Question: can someone please help me You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck

can someone please help me
can someone please help me You have been asked by the president
of your company to evaluate the proposed acquisition of a new special-purpose

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 $20,000. The 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 $20,000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 40 percent, an opportunity cost of capital of 8 percent. What will the cash flows for this project be? Ch 12.9 Deliverable (100 total points): Complete the Ch 12 Problem #9 Excel worksheet and answer the following questions (50 points). Q.3 What will the cash flows for this project be? (25 points) Q4 According to the Management Report, should KADS go forward with the project? (25 points) Explain your answers in detail using the Capital Budgeting key topic and tools in Ch 13 and Ch 13 from the M: Finance textbook readings MACRS Depreciation Year 20 2 3 24.49 15 5.00% 9.50 8.55 7 70 6.93 5 6 6.23 8 5.90 5.90 591 5.90 5.91 5.90 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 39 34 35 36 37 38 39 40 3 33.33% 44.45 14.81 7.41 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 10.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 000 Normal Recovery Period 7 10 20.00% 14 29% 10.00% 32 00 18.00 19.20 17 49 14.40 1152 12.49 1152 11.52 8.93 9.22 5.76 892 737 0.00 8.93 6 55 000 4 46 6 55 0.00 0.00 6 56 0.00 0.00 655 0.00 0.00 3.28 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 000 0.00 000 0.00 000 000 0.00 000 0.00 0.00 0.00 0.00 0.00 0.00 000 000 0.00 0.00 0.00 000 0.00 0.00 000 0.00 0:00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 000 0.00 0.00 0.00 0.00 000 0.00 0.00 591 5.90 5.91 2.95 0.00 0.00 000 0.00 000 0.00 0.00 0.00 000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0:00 0.00 0.00 3.750% 7219 6677 6 177 5713 5.285 4.888 4522 4.462 4.461 4 462 4 461 4462 4461 4462 4461 4462 4.461 4462 4.461 2.231 0.00 0.00 0.00 000 0.00 0.00 000 0.00 000 0.00 0.00 0.00 000 0.00 000 0.00 0.00 0 00 000 000 Real Estate Residential Nonresidential 27.5 31.5 39 3.485% 3.042% 2.461% 3.636 3.175 2564 3636 3.175 2.564 3636 3.175 2564 3.636 3.175 2564 3636 3.175 2.564 3.636 3.175 2.564 3.636 3.175 2.564 3.636 3 174 2 564 3.637 3.175 2564 3.636 3.174 2.564 3.637 3 175 2564 3.636 3 174 2 564 3637 3175 2 564 3.636 3.174 2564 3637 3175 2564 3.636 3.174 2.564 3.637 3.175 2.564 3.636 3.174 2.564 3.637 3175 2564 3.636 3.174 2564 3.637 3.175 2.564 3.636 8174 2564 3637 3.175 2.564 3.686 3.174 2564 3637 3.175 2.564 3.636 3174 2.564 1970 3.175 2564 0.00 3.174 2564 0.00 3.175 2564 0.00 3 174 2.564 0.00 1 720 2564 000 0.00 2564 0.00 0.00 2564 0.00 0.00 2564 0.00 0.00 2564 0.00 0.00 2564 0.00 0.00 2 564 0.00 0.00 2564 0:00 0.00 0.107 0.00 000 0.000

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