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You have been asked by the President of your company to evaluate the proposed acquisition of a new special-purpose truck for $50,000, The truck, which

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You have been asked by the President of your company to evaluate the proposed acquisition of a new special-purpose truck for $50,000, The truck, which will be depreciated on a straight-line basis, will be sold after three years for $20,000. Use of the truck will require an initial increase in spare parts inventory of $2,000. Acquisition of the truck will have no impact on revenues, but it is expected to save the company $20,000 per year in before-tax operating costs, mainly labor. The company's marginal tax rate is 20%. What will the year 2 cash flow for this project be

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