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juin [17]
3 years ago
6

You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $25

0,000. The truck falls into the MACRS three-year class, and it will be sold after three years for $50,000. Use of the truck will require an increase in NWC (spare parts inventory) of $5,000. The truck will have no effect on revenues, but it is expected to save the firm $80,000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 21 percent. What will the operating cash flow for this project be during year 3
Business
1 answer:
JulijaS [17]3 years ago
5 0

Answer:

Please find the complete solution in the attachment file.

Explanation:

Please find the attachment table for the 3 years of cash flow:

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Loni owns a software company and has a great idea for a new app. In order to build the app, she will need to hire a computer exp
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A project has an initial cost of $31,800 and a market value of $29,600. What is the difference between these two values called
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Net present value

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Below is the given values:

Net present value is the correct answer.

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Net present value shows that the present value of cash inflows minus cash outflows. Moreover, the present value comes by discounting the cash flows at an applicable discount rate.

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