Mills Mining is considering the purchase of additional equipment. The proposed project has the following features: The equipment has an invoice price of $390,000 and will cost $40,000 to modify for company use. Shipping will cost $10,000. The company spent $10,000 last year analyzing 5 competing brands of equipment before deciding that this brand was the best for their purposes. The equipment will be depreciated as a 3-Year MACRS asset with the following rates: Year 133%, Year 2-45\%, Year 3-15\%, and Year 47%. - If the project is undertaken, the company will need an increase in net working capital of $40,000. This net working capital will be recovered at the end of the project's three year life. - If the project is undertaken, the company will realize an additional $500,000 in sales over each of the next three years. The company's operating costs (excluding depreciation) will be $200,000 higher over each of the next three years. - If the project is undertaken, old equipment that has been fully depreciated can be sold for $20,000. If the project is not undertaken, the old equipment will last 3 more years, at which time its salvage value will be zero. - The company's tax rate is 40 percent. - At the end of year three, the equipment will have a salvage value of $90,000. - The project's cost of capital is 10 percent. When conducting a net present value (NPV) analysis of this project, the cash flow for the final year (year 3 ), including the terminal year cash flows, will be equal to: A. $312,720 B. $306,400 C. $266,400 D. $318,720