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Business, 11.05.2021 20:00 1846252

Pepper's Pizza is considering adding an additional pizza oven to help meet their increased carryout and delivery demand. The oven would cost $20,000 and require a $500 increase in net operating working capital which will be recovered at the end of the life of the oven.. The oven has a 3-year expected life and falls into the 3-year MACRS depreciation class with the following annual depreciation percentages: yr 1: 33% yr 2 45% yr 3 15% yr 4: 7% The new oven would increase annual revenues by $20,000 and increased annual operating costs will be 40% of increased revenues. The company's tax rate is 30%. The oven would have a salvage value of $1000 at the end of its 3-year life. What is the year 2 operating cash flow for this project

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Pepper's Pizza is considering adding an additional pizza oven to help meet their increased carryout...

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