#$8$ You are evaluating a new project for Chet Holmgren, Inc. $($CHI$).$ The project requires an initial investment of $$550,000$ which will be depreciated using the $3-$year MACRS schedule $($Year $1=33\%,$ Year $2=45\%,$ Year $3=15\%,$ Year $4=7\%).$ The project will increase revenues by $$202,000$ and will increase costs by $$70,000$ each year for the next four years. The project will be sold at the end of $4$ years for $$10,900.$ The project requires an increase in net working capital investment of $$16,000$ which will be recovered at the end of the project$$s life. The tax rate is $25\%$ and the required return on the project is $10\%.$

What is the total cash flow in year $4$ of this project?

Multiple Choice

$$116,800$

$$84,450$

$$132,800$

$$108,625$