Lowell Company is considering adding a robotic paint sprayer to the production line. The prayer$$s base price is $$100,000,$ and it would cost another $$10,000$ to install it$.$ The machine falls into the MACRS $3-$year class, and it would be sold after $3$ years for $$30,000.$ The MACRS rates for the first three years are $33\%,45\%,$ and $15\%.$ The machine would require and, increase in net working capital of $$6,000.$ The sprayer would not change revenues, but it is expected to save the firm $$40,000$ per year in before tax operating costs, mainly labor. Lowell$$s marginal tax rate $($federal plus state$)$ is $25\%.$

If the project$$s cost of capital is $6\%,$

What is the TOTAL FREE CASH FLOW FOR YEAR $3?$

Free cash flow $=$ Total Initial Investment $+$ Total annual project CF $+$ Total Salvage Value

$$64,550$

$$67,400$

$$64,800$

$$70,250$