You are evaluating a project for your company. You estimate the sales price to be $$520$ per unit and sales volume to be $2,200$ units in year $1$;$3,200$ units

in year $2$; and $1,700$ units in year $3.$ The project has a three$-$year life. Variable costs amount to $$320$ per unit and fixed costs are $$210,000$ per year. The

project requires an initial investment of $$335,000$ in assets which will be depreciated straight$-$line to zero over the three$-$year project life. The actual

market value of these assets at the end of year $3$ is expected to be $$52,000.$ NWC requirements at the beginning of each year will be approximately $20$

percent of the projected sales during the coming year. The tax rate is $21$ percent and the required return on the project is $10$ percent. What change in

NWC occurs at the end of year $1?$

Multiple Choice

$$82,160$

$$139,672$

$$104,000$

$$176,800$