#$5$ The Kevin Durant Co$.$ is considering the purchase of some new machinery. The new machinery costs $$80,000.$ The machinery will be depreciated on a straight$-$line basis for three years and it will be sold after three years for $$8,200.$ The machinery will require company to increase working capital by $$4,100$ which will be recovered at the end of the machinery's life. The machinery is not anticipated to increase revenues but it will save the company $$127,950$ in costs each year of the project's three year life. The company has a $10\%$ cost of capital and has a $20\%$ tax rate.

What is the total cash flow of the project in its terminal year?

Multiple Choice

$$107,693$

$$118,353$

$$114,253$

$$111,793$