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Business, 14.11.2019 19:31 mscharris66

You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $60,000. the truck falls into the macrs 3-year class, and it will be sold after three years for $19,200. use of the truck will require an increase in nwc (spare parts inventory) of $1,200. the truck will have no effect on revenues, but it is expected to save the firm $20,600 per year in before-tax operating costs, mainly labor. the firm’s marginal tax rate is 39 percent. what will the cash flows for this project be?

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