when conducting net present value analysis of the project, the cash flow for the fiscal year (year 3) including the terminal year cash flows will be equal to?

The equipment has an invoice price of $390,000 and will cost $40,000 to modify for company use Shipping will cost $10,000 The company spent $10,000 last year analyzing 5 competing brands of equipment before deciding that this brand was the best for their purposes. The equipment will be depreciated as a 3-Year MACRS asset with the following rates Year 1 - 33%, Year 2 45%, Year 3 - 15%, and Year 4 - 7% If the project is undertaken the company will need an increase in networking capital of $40,000. This networking capital will be recovered at the end of the project's three year life If the project is undertaken the company will realize an additional $500,000 in sales over each of the next three years. The company's operating costs (excluding depreciation) will be $200,000 higher over each of the next three years if the project is undertaken old equipment that has been fully depreciated can be sold for $20,000 of the project is not undertaken the old equipment will last 3 more years, at which time its salvage value will be zero The company's tax rate is 40 percent At the end of year three, the equipment will have a salvage value of $90,000 The project's cost of capitalis 10 percent O A $306.400 OB$268.400 OC $312.720 D$318,720