The manager at Vastine Medico is considering a new computer system. The purchase price of the computer system is $40,000.

The CFO decided that the computer system can be classified in the MACRS 3-year class. The computer system will require a $3,000 investment in net working capital.

The computer system is expected to increase sales by $40,000 per year and raise operating costs by $25,000 annually. After three years, the computer system will be sold for $25,000.

Investors demand a required rate of return of 13% and Vastine Medico tax rate is 40%.

MACRs Depreciation Schedule
Year	1	2	3	4	5	6
3 Year Class	33%	45%	15%	7%
5 Year Class	20%	32%	19%	12%	11%	6%

What is the total after tax NON operating cash flow at end of year 3?

	A.	$15,000
	B.	$18,120
	C.	$19,120
	D.	$16,120