You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck. The truck's basic price is$ 50,000, and it will cost another $10,000 to modify it for special use by your firm. The truck falls in the MACRS 3-year class, and it will be sold after three years for $20,000, use of the truck will require an increase in net working capital (spare parts inventory) of $2,000 ( at t=0). The truck will have no effect on revenues, but is expected to save the firm $20,000 per year in before-tax operating costs. The firm's marginal tax rate is 40 percent and the company's cost of capital is 14%

MACRS depreciation schedule:

Year	PERCENTAGE
1	33%
2	45%
3	15%
4	7%

Calculate the NPV of this project. Should they purchase the truck?