A corporation is considering the physical asset investment described below. The investment will be made from company funds. The corporation's combined federal, state and local marginal tax rate is 44%. Natural resource depletion does not apply to this investment. What is the net cash flow after taxes EOY 3 for this investment?

Net cash flow before taxes EOY 3 excluding depreciation = $40,000

Asset cost basis = $136,000

Depreciation by MACRS (5-year recovery period): Year t MACRS % Rate 1 20.00

Year (t)	MACRS % Rate
1	20.00
2	32.00
3	19.20
4	11.52
5	11.52
6	5.76