Calculate the FCF-OCF=NWC in the following: A new delivery truck can be purchased...

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Accounting

Calculate the FCF-OCF=NWC
in the following: A new delivery truck can be purchased for $30,000. The old one could be sold day for $5,000, and has a book value of $3,000. In three years, the old truck will have a salvage value of $1,000(and no book value). The new truck would be depreciated on a 5-year MACRS schedule. The firms tax rate is 21%.
Assume the remaining book value of the old truck will be depreciated in year 1, and that the new truck will have a salvage value of $10,000 in year 3.

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