(Chapter 6) Tigers Baseball Inc. is considering investing in a project that has a 4-year life. The cost of the machine is $160,000 and has no salvage value at the end of year 4. The company uses straight-line depreciation to a zero- book value over the life of the project. In addition, inventory will increase by $40,000 at the time of the investment and this will be released at the end of the project. The annual sales are expected to be $220,000 and the cost of goods sold is projected to be $140,000. The tax rate is 21 percent. What is the net cash flow (annual operating cash flow plus terminal cash flow) at the end of year 4 if the salvage value is 0? $71,600 $111,600 $23,000 $31,600 $40,000