MOTOR CORP Inc. just bought a new lathe for $60,000. It is depreciated over its 10-year life using straight line depreciation method. There is no salvage value at the end of its useful life. The new lathe will increase revenues by $22,000 per year with no increase in operating cost. If MOTOR CORPs marginal tax rate is 35 percent, what is the net cash flow in the first year?

Question 7 options:

	none of the above
	$40,000$
	$16,400
	$24,700
	$7,700