A company is purchasing a new machine which will cost $130,000 with additional shipping costs of $5,000 and set up and installation costs of $12,000.

An additional $8,000 in Net Working Capital will be required.

Project life is five (5) years.

The project will increase revenues by $90,000 each year and operating costs will increase by $32,000 annually.

The machine has a class life of seven (7) years and will be depreciated using the straight line method.

The company will sell the machinery for $50,000 at the end of five years.

The companys cost of capital is 12% and the marginal tax rate is 34%.

Calculate the total cash flows (operational and Nonoperational) for the last year of the project.

$109,351

$100,700

$78,241

$98,276