CA Inc.is considering introducing a new beer line of beer called XX Squared (or Cuatro Equis) bought to you bythe Most, Most Interesting, Interesting Man in the World.XX Squared would require a special prepartion processand new equipment.The cost of the new equipment is $500,000 and would require an increase in net working capital of $30,000.Lets assume the new corporate tax laws apply and CA inc can expense the cost of the new equipment immediately and their marginal federal plus state tax rate is 26%. The expected life of the project is 3 years. CA Inc. has already spent $100,000 on a marketing analysis that showsthat sales would increase $400,000 in year 1 of the project.Additional operating costs other than depreciation will be 40% of sales.The expected salvage value at the end ofthe projects 3 year life is $100,000 and any increases in net working capital during the life of the project will berecovered or liquidated at the end of the projects expected life.The companys marginal tax rate is 26% and thecompany will have enough other taxable income to more than offset any taxable losses from the XX Squaredproject.CAs WACC is 10.5%

What is the total year 3 (operating plus terminal) cash flow for the XX Squared project? (Answer is $281,600)

By hand please because this is on my final