Question
Your firm, currently in he 30% tax bracket is contemplating the purchase of a new truck to deliver produce. The truck will cost $90,000 and
Your firm, currently in he 30% tax bracket is contemplating the purchase of a new truck to deliver produce. The truck will cost $90,000 and will require 10,000 of additional equipment to be added when delivered to your company. The truck will be depreciated on a straight line basis over a 20 year period and will both improve rev by $2,000 and cut operating expenses by net amount of $4000. What will the annual cash flow from the truck each year if you expect the salvage value for the truck at the end of the 20 yr period to be $10,000?
I have a final exam in finance tomorrow and this question is on our study guide and I can't figure it out. Please help. There is no cheating or academic integrity at stake here
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