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You have been asked by the president of your company to evaluate the proposed acquisition...

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Finance

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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, Is not eligible for elther bonus depreciation or Section 179 expensing, and it will be sold after three years for $20,900. Use of the truck will require an increase in NWC (spare parts inventory) of $2,900. The truck will have no effect on revenues, but it is expected to save the firm $20,300 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? (Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.) 1 2 3 Year FCF

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