A small excavation company is investigating the possibility of purchasing a new earth mover machine. The vehicle costs $90,000, and an additional $10,000 is needed to modify it for special use by the firm. The company will also need an extra $2000 in net working capital for parts inventory. If the company purchases the earth mover, they will be able to save $30,000 per year (before taxes) - mostly in labor costs. The company accountant plans to depreciate the vehicle using the straight-line method over its 5-year expected life. The salvage value (and expected sale price) at that time is $25,000. The firm's tax rate is 40% and its required rate of return is 10%. Calculate the total cash flow associated with the initial outlay. Calculate the operating cash flow for Year 2 associated with the earth mover project. $23,200$24,000$24,160$30,000 None of the above