TheyChat Ltd has asked you to evaluate the proposed acquisition of a new computer system. The system's price is $30,000, installation costs are $9,000, and the system will be depreciated straight-line over a three-year life. Purchase of the system would require an increase in net operating working capital of $2,000. The system would increase the firm's before-tax revenues by $20,000 per year but would also increase operating costs by $5,000 per year. The system is expected to be used for 3 years and then be sold for $25,000. The firm's marginal tax rate is 30%. What is the net operating net cash flow in Year 1? 

Select one: 

a. $10,240 

b. $13,453 

c. $9,000 

d. $14,400 

e. $11,687