Thornley Co. is considering a 3-year project with an initial cost of $587,000. The project will not directly produce any sales but will reduce operating costs by $265,000 a year. The equipment is classified as MACRS 7-year property. The MACRS table values are .1429, .2449, .1749, .1249, .0893, .0892, .0893, and .0446 for Years 1 to 8, respectively. At the end of the project, the equipment will be sold for an estimated $295,000. The tax rate is 34 percent and the required return is 9 percent. An extra $23,000 of inventory will be required for the life of the project. What is the total cash flow for Year 3?

$491,782.87

$496,208.19

$514,782.87

$519,208.19

$523,008.24