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Business, 06.12.2019 05:31 bvaughn4152

The president of real time inc. has asked you to evaluate the proposed acquisition of a new computer. the computer's price is $ 5 0,000, and it falls into the macrs 3-year class. purchase of the computer would require an increase in net operating working capital of $2,000. the computer would increase the firm's before-tax revenues by $ 24 ,000 per year but would also increase operating costs by $ 18 ,000 per year. the computer is expected to be used for 3 years and then be sold for $25,000. the firm's marginal tax rate is 40 percent, and the project's cost of capital is 14 percent. what is the operating cash flow in year 2? round it to a whole dollar, and do not include the $ sign.

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