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

You have been asked by the president of your company to evaluate the proposed acquisition of a new special purpose truck for $60000. The truck falls into the MACROS 3 year class and it will be sold after 3 years for $20900. Use of the truck will require an increase in NBC(spare part inventory) of $2900. The truck will have no effect on revenues but it is expected to save the firm $20300 per year in before tax operating costs mainly labor. The firms marginal tax rate is 35 percent. What will the cash flows for this project be?

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