You are evaluating a potential purchase of several light-duty trucks. The initial cost of the trucks will be $170,000. T

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answerhappygod
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You are evaluating a potential purchase of several light-duty trucks. The initial cost of the trucks will be $170,000. T

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You are evaluating a potential purchase of several light-dutytrucks. The initial cost of the trucks will be $170,000. The trucksfall in the MACRS 5-year class that allows depreciation of 20% thefirst year, 32% the second year, 19% the third year, 12% the fourthyear, 11% the fifth year, and 6% the sixth year. You expect to sellthe trucks for 20,400 at the end of five years. The expectedrevenue associated with the trucks is $135,000 per year with annualoperating costs of $69,000. The firm's marginal tax rate is 25.0%.What is the after-tax operating cash flow for year 2? Group ofanswer choices
$63,100
$8,700
$49,500
$11,600
$54,400
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