You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $190,000. The truck falls into the MACRS 5-year class, and it will be sold after 5 years for $19,000. Use of the truck will require an increase in NWC (spare parts inventory) of $4,900. The truck will have no effect on revenues, but it is expected to save the firm $86,000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 21 percent. What will the operating cash flows for this project be during year 2? Multiple Choice O $80,708 $81,100 O $128,740 O $25,200

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 $19,500. Use of the truck will require an increase in NWC (spare parts inventory) of $1,500. The truck will have no effect on revenues, but it is expected to save the firm $20,500 per year in before-tax operating costs, mainly labor. The firm’s marginal tax rate is 35 percent.What will the cash flows for this project be?

You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $50,000. The truck falls into the MACRS three-year class, and it will be sold after three years for $5,000. Use of the truck will require an increase in NWC (spare parts inventory) of $2,000. The truck will have no effect on revenues, but it is expected to save the firm $25,000 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 2? Multiple Choice $21,890 $22.225 $22,690 $24,417 Google Chrome MacBook Air 80 888 DII DD F2 F3 F4 F5 F6 F7 F8 F9 F10 F12 %23 $ &

You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $370,000. The truck falls into the MACRS 3-year class, and it will be sold after 3 years for $62,000. Use of the truck will require an increase in NWC (spare parts inventory) of $6,200. The truck will have no effect on revenues, but its expected use at your company will save the firm $100,000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 21 percent. What will the cash flows for this project be during year 3?

You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $240,000. The truck falls into the MACRS 7-year class, and it will be sold after 7 years for $24,000. Use of the truck will require an increase in NWC (spare parts inventory) of $5,400. The truck will have no effect on revenues, but it is expected to save the firm $102,000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 21 percent. What will the operating cash flows for this project be during year 2?   Multiple Choice A. $92,923 B. $96,600 C. $43,224 D. $139,356

You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $300,000. The truck falls into the MACRS 5-year class, and it will be sold after 5 years for $55,000. Use of the truck will require an increase in NWC (spare parts inventory) of $5,500. The truck will have no effect on revenues, but its expected use at your company will save the firm $66,000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 21 percent. What will the cash flows for this project be during year 3? Multiple Choice O O $6,636 $60,000 $64,236 $109,740

You have been asked by the president of your company to evaluatethe proposed acquisition of a new special-purpose truck for $70,000. The truck falls intothe MACRS three-year class, and it will be sold after three years for $19,000. Use of thetruck will require an increase in NWC (spare parts inventory) of $1,000. The truck willhave no effect on revenues, but it is expected to save the firm $24,000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 21 percent. What willthe cash flows for this project be (year 0-3)?

You have been asked by the president of your company to evaluate the proposed acquisition of a new special purpose truck for $280,000. The truck falls into the MACRS 10-year class, and it will be sold after 10 years for $53,000. Use of the truck will require an increase in NWC (spare parts inventory) of $5,300. The truck will have no effect on revenues, but it is expected to save the firm $83,000 per year in before tax operating costs, mainly labor. The firm's marginal tax rate is 21 percent. What will the cash flows for this project be during year 3? Multiple Choice $105,890 $74,037 $28,000 $33.717

You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $390,000. The truck falls into the MACRS 7-year class, and it will be sold after 7 years for $64,000. Use of the truck will require an increase in NWC (spare parts inventory) of $6,400. The truck will have no effect on revenues, but its expected use at your company will save the firm $102,000 per year in before - tax operating costs, mainly labor. The firm's marginal tax rate is 21 percent. What will the cash flows for this project be during year 3?

ou have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $120,000. The truck falls into the MACRS 7-year class, and it will be sold after 7 years for $12,000. Use of the truck will require an increase in NWC (spare parts inventory) of $4,200. The truck will have no effect on revenues, but it is expected to save the firm $52,000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 21 percent. What will the operating cash flows for this project be during year 2?