You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $340,000. The truck falls into the MACRS 5-year class, and it will be sold after 5 years for $59,000. Use of the truck will require an increase in NWC (spare parts inventory) of $5,900. The truck will have no effect on revenues, but it is expected to save the firm $86,000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 40 percent. What will the cash flows for this project be during year 3?

a) $12,432

b) $77,712

c) $116,880

d) $68,000