JB Enterprises is considering replacing a $3-$year$-$old computer system with a new, improved system. The company paid an engineering firm $$1,000$ to review new systems and make a recommendation. Based on their recommendation, a new

system has been selected that allows for better order processing and production efficiency. If the new system is purchased, revenues are expected to increase by $$5,000$ per year and operating costs are expected to decrease by $$2,500$ per

year. The new system will cost $$9,000$ plus $$300$ for shipping and $$700$ for installation. Both the old and the new computer systems are $3-$year MACRS assets for depreciation purposes. Depreciation rates are $33\mathrm{.}33\%$ in year one, $44\mathrm{.}44\%$ in

year two, $14\mathrm{.}82\%$ in year three, and $7\mathrm{.}41\%$ in year four. The company's tax rate is $40\%.$ If the new system is purchased, the old computer system will be sold for $$2,000.$ The old system originally cost $$6,000.$ Additional net working capital

of $$800$ will be required for this project. After $3$ years, the new system will be obsolete and will be replaced. JB Enterprises expects the salvage value of the new system to be $$900$ at the end of year three.

The final year adjustments or terminal year cash flows $($salvage value $\frac{+}{?}-$ tax effects $+$ recovery of net working capital$)$ for year three is:

A$.$ $$1,636$

B$.$ $$1,436$

C$.$ $$1,836$

D$.$ $$1,900$