A firm is considering a new $5-$year project that will require $$612,000$ for new fixed assets, $$160,000$ for inventory, and $$35,000$ for accounts receivable. Short$-$term debt is expected to increase by $$110,000.$ The fixed assets will be depreciated straight$-$line to zero over the life of the project. The project is expected to generate annual sales of $$694,000$ with costs of $$428,000.$ The tax rate is $35$ percent, and the required rate of return is $15$ percent. What is the amount of the earnings before interest and taxes $($EBIT$)$ for the first year of this project?

Multiple Choice

$$143,600$

$$90,025$

$$138,500$

$$167,000$

$$93,340$