Zebra Technologies is considering some new equipment. The equipment's price is $$80,000,$ and it would cost another $$15,000$ to modify it for special use. The equipment depreciates straight line to $0$ over its $4-$year economic life, but will be sold after $3$ years for $$30,000.$ The new equipment will have no effect on revenues, but it is expected to save the firm $$40,000$ per year in before$-$tax operating costs. Zebra's marginal tax rate is $38\%,$ and the managers estimate its cost of capital to be $14\%.$ What is the project's NPV$?$

$$2,393$

$$3,185$

$$2,175$

$$3,504$

$$3,854$