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K&M Winery has an old wine press that the company wants to replace with a more efficient press. The new press costs $ 1 1

K&M Winery has an old wine press that the company wants to replace with a more efficient press. The new press costs $110,000 with an additional $10,000 in installation costs. The old press was purchased two years ago for a cost of $60,000 and $10,000 in installation costs. It can be sold for a price of $40,000 today. The old press was depreciated under the MACRS 3-year recovery schedule while the new press will be depreciated under the MACRS 5-year recovery schedule. K&M Winery projects revenues to be $250,000 more with the new press each year for the next three years. Expenses (excluding depreciation) are 80% of sales. The firm is in the 21% tax rate.
What is the operating cash flow for year 3?

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