Jones Crusher Company is evaluating the proposed acquisition of a new machine. The machine will cost $190,000, and it will cost another $33,000 to modify it for special use by the firm. The machine falls into the MACRS 3minusyear class, and it will be sold after 3 years of use for $110,000. The machine will require an increase in net working capital of $9,000 and will have no effect on revenues, but is expected to save the firm $90,000 per year in beforeminustax operating costs, mainly labour. The company's marginal tax rate is 40%. What is the cash flow from the project for year 1?

MACRS Depreciation Rates

Year	3- Year	5- Year
1	33.33%	20.00%
2	44.45%	32.00%

A. $71,840

B. $9,404

C. $90,000

D. $83,730

E. $79,331