18 Fritz Electronics is evaluating the proposed acquisition of a new Turboencabulator. The machine will cost $290,000. Shipping and installation are an additional $33,000. The machine is in Class 43 with a depreciation rate of 30%, and after 2 years of use for $190,000. The machine will require an increase in net working capital of $9,000 and will have no effect on revenues, but is expected to save the firm $150,000 per year in before-tax operating costs, mainly labour. The company's cost of capital is 10% and the marginal tax rate is 40%. What is the operating cash flow from the project for year1 A) 60,930 B) 83,730 C) D) *109,380 E) 101,550 122,946