You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $350,000. The truck falls into the MACRS 7-year class, and it will be sold after 7 years for $60,000. Use of the truck will require an increase in NWC (spare parts inventory) of $6,000. The truck will have no effect on revenues, but it is expected to save the firm $87,000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is 21 percent. What will the cash flows for this project be during year 3?

• $50,000

• $81,585

• $129,945

• $20,370