Question: multiple 8) You are considering purchasing a truck for your firm. The truck will cost $100,000. Use of the truck is expected to increase the

multiple

8) You are considering purchasing a truck for your firm. The truck will cost $100,000. Use of the truck is expected to increase the firm's revenues by S70,000 per year and increase the costs by $30,000 per year. The truck will be depreciated using 5 year straight-lin depreciation. Your firm's marginal tax rate is 40%. A) What is the operating cash flow in Year 1? $40,000 $32,000 $24,000 $12,000 B)

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