DSSS Corporation

DSSS Corporation is considering a new project to manufacture widgets. The cost of the manufacturing equipment is $$115,000.$ The cost of shipping and installation is an additional $$17,000.$ The asset will fall into the $3-$year MACRS class. The year $1-4$ MACRS percefintages are $33\mathrm{.}33\%,44\mathrm{.}45\%,14\mathrm{.}81\%,$ and $7\mathrm{.}41\%,$ respectively. Sales are expected to be $$220,000$ per year. Cost of goods sold will be $60\%$ of sales. The project will require an increase in net working capital of $$17,000.$ At the end of three years, DSSS plans on ending the project and selling the manufacturing equipment for $$30,000.$ The marginal tax rate is $40\%$ and DSSS Corporation's appropriate discount rate is $10\%.$ The fixed expenses is $$12,000.$

Refer to DSSS Corporation. What is the total cash flow generated in year $3?$

$$92,332$

$$69,070$

$$38,912$

$$53,420$