A manager thinks that, every year, she can sell 50,000 units of a product at a price of $4 per unit. It costs about $2.50 per unit to make the product and the project has a 3 year life. Fixed costs run $12,000 per year and the manager needs to invest in $90,000 worth of manufacturing equipment to start the project. Depreciation expenses are $30,000 per year. Also, the project will require an initial investment of $20,000 in net operating working capital (NOWC) but the NOWC will be recovered at the end of the life of the project (i.e. Year 3). What is the projects Year 3 free cash flow? Assume a 20% WACC and a 34% tax bracket.

		-$110,000
		$21,780
		$33,000
		$51,780
		$71,780