JB Enterprises is considering replacing a 3-year-old computer system with a new, improved system. The company paid an engineering firm $1,000 to review new systems and make a recommendation Based on their recommendation, a new system has been selected that allows for better order processing and production efficiency. If the new system is purchased, revenues are expected to increase by $5.000 per year and operating costs are expected to decrease by $2.500 per year, The new system will cost $9,000 plus 5200 for shipping and $800 for installation Both the old and the new computer systems are 3-year MACRS assets for depreciation purposes. Depreciation rates are 33.33% in year one, 44 44% in year two, 14 82% in year three, and 7 41% in year four. The company's tax rate is 40% If the new system is purchased the old computer system will be sold for $2.000 The old system originally cost $6.000 Additional net working capital of $600 will be required for this project. After 3 years, the new system will be obsolete and will be replaced JB Enterprises expects the salvage value of the new system to be $900 at the end of year three The final year adjustments or terminal year cash flows (salvage + tax effects + recovery of net working capital) for year three equal O A. $1,900 OB. $1,636 OC. $1836 OD. $1,436