Tippit-the-Strong Company is looking at a new sausage system with an installed cost of $280,000. This asset will be depreciated according to MACRS 5 years schedule over the projects three-year life, at the end of which the sausage system can be sold for $77,000. The sausage system will create annual savings of $195,000 (before taxes and depreciation), and the system requires an initial investment in net working capital of $36,000. The tax rate is 35 percent.

What is the book value at the end of Year 3?

		zero
		$80,640
		$56,000
		$190,360