Quip Corporation wants to purchase a new machine for $297,000. Management predicts that the machine will produce sales of $212,000 each year for the next 5 years. Expenses are expected to include direct materials, direct labor, and factory overhead (excluding depreciation) totaling $78,000 per year. The firm uses straight-line depreciation with an assumed residual (salvage) value of $50,000. Quip's combined income tax rate, t, is 50%.

What is the net after-tax cash inflow in Year 1 from the proposed investment, rounded to the nearest whole dollar?

Multiple Choice

• $101,700.

• $119,700.

• $95,700.

• $71,700.

• $91,700.