Company Alpha is considering building an aircraft maintenance facility in Arizona. The facility is to be evaluated over a three$-$year life. The company estimates that:

The facility will help to generate sales of $$100,000$ for the first year, and then $$110,000$ in year $2,$ $$130,000$ in year $3.$

Annual fixed operating costs are expected to be $$50,000.$ Variable cost is $$10,000$ in year $1,$ $$10,500$ in year $2,$ $$11,025$ in year $3.$

All required equipment such as machines, carts and trucks cost in total of $$60,000,$ which will go through a straight$-$line depreciation down to zero value. The market value of the equipment at the end of the project$$s life is $$22,000.$

The project would require $$15,000$ in net working capital in year $0$ and the net working capital is expected to grow $4\%$ a year in the following years. At the end of year $3,$ the investment in NWC will be fully recovered.

The relevant tax rate is $20\%$ and required return is $10\%.$ The company has $$4,000$ of interest expense which is expected to stay fixed over the $3$ years.

What is the FREE CASH FLOW in year $3?$

$$90,604$

$$101,804$

$$93,004$

$$78,572$

$$97,804$