You are evaluating the purchase for a manufacturing machine; the price is $120,000 and it will save company $50,000 of expenses every year. The machine is depreciated using three-year straight-line schedule and will be sold after that for $50,000. The project would have no effect on revenues, and the corporate tax rate is 30%. What is the projects after-tax cash flow in Year 3?

(A)	$35,000.
(B)	$47,000.
(C)	$60,000.
(D)	$70,000.
(E)	$82,000.

2. Using the same information from previous question (Question 15). The machine will be sold for $50,000 after three years. What is the Year 3 after-tax cash flow if the machine is depreciated using MACRS 3-year class where the applicable depreciation rates are 33%, 45%, 15% and 7%.

(A)	$26,600.
(B)	$61,600.
(C)	$69,520.
(D)	$75,400.
(E)	$77,920.