"Use this information for the next $2$ questions. Vols, Inc. is considering introducing a new bobblehead

doll. Each doll costs $$1\mathrm{.}00$ to make and will sell for $$5\mathrm{.}00.$ Packaging machinery will cost $$100,000,$

including shipping and installation. Sales are expected to be $100,000$ dolls in Year $1,150,000$ dolls in Year

$2$ and $200,000$ dolls in Year $3$ after which the equipment will be sold, and the production line shut down.

The equipment will be sold for $$60,000$ at the end of $3$ years. The machinery will be depreciated using

the $5-$year MACRS depreciation schedule, shown below. Working capital in the amount of $11\mathrm{.}0\%$ of the

current years' sales will be required at the beginning of the year $($that is$,$ will be required at the end of

the previous year$).$ Vol's tax rate is $25\%$

Year $123456$

Depreciation $\%20\mathrm{.}00\%32\mathrm{.}00\%19\mathrm{.}20\%11\mathrm{.}52\%11\mathrm{.}52\%5\mathrm{.}76\%"12.$Assume that the required incremental investment in working capital in Year $1$ is $$20,000.$ Calculate

the project's total cash flow for capital budgeting purposes in Year $1.$

a$.285,000$

b$.313,500$

c$.344,850$

d$.379,335$

e$.417,269$