An analyst has been asked by the president of Ellis Construction Company to evaluate the proposed acquisition of a new earthmover. The mover's basic price is $50,000, and it will cost another $10,000 to modify it for special use by Ellis Construction. Assume that the mover falls into the MACRS 3-year class. See table for recovery allowance percentages. It will be sold after 3 years for $20,000, and it will require an increase in working capital (spare parts inventory) of $2,000. The earthmover purchase will have no effect on revenues, but it is expected to save Ellis $20,000 per year in before-tax operating costs, mainly labor. Ellis's marginal federal-plus-state tax rate is 40 percent. Recovery Allowance Percentage Year 3-Year 1 33% 2 45% 3 15% 4 7% What is the terminal year cash flow? A. $27,280. B. $27,680. C. $31,280