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You have been asked by the president of your company to evaluate the proposed acquisition of a now special-purpose truck tor $50,000. The truck falls
You have been asked by the president of your company to evaluate the proposed acquisition of a now special-purpose truck tor $50,000. The truck falls into the 3-year class, and it will be sold after three years for $21,000. Use of the truck will require an increase in NWC (spare parts inventory) of $3,000. The truck will have no effect on revenues, but it is expected to save the firm $16, 900 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 34 percent. What will the cash flows for this protect be
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