Leamon Corporation is considering a capital budgeting project that would require an investment of $240,000 in equipment with a 4 year useful life and zero salvage value. The annual incremental sales would be $630,000 and the annual incremental cash operating expenses would be $480,000. In addition, there would be a onetime renovation expense in year 3 of $40,000. The company's income tax rate is 35%. The company uses straight-line depreciation on all equipment. The total cash flow net of income taxes in year 3 is: $92,500 $110,000 $78,500 $118,500