A company is looking to invest in new machinery. The cost of the machinery, including shipping and installation costs, is $$34\mathrm{.}5$ million. The initial outlay also includes an investment in net working capital of $$4$ million.

The company has estimated that revenue will increase $$38\mathrm{.}9$ million in each of the next three years if the machinery is purchased. Costs $($both variable and fixed$)$ are also expected to increase $$10\mathrm{.}2$ million in each of the next three years.

The company uses a standard straight$-$line depreciation method. In particular, the company will straight$-$line depreciate the machinery to zero over the three$-$year life of the project.

Suppose the company expects to sell the new machinery for $$2\mathrm{.}5$ million in scraps at the end of the three years. If the company has a marginal tax rate of $39\%,$ what will be the total cash flow $($i$.$e$.,$ the terminal cash flow $+$ the third year$$s differential cash flow$)$ in the third year?

$$24\mathrm{.}54$ million

$$28\mathrm{.}04$ million

$$26\mathrm{.}03$ million

$$25\mathrm{.}87$ million

$$27\mathrm{.}52$ million