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 $200 for shipping and $800 for installation Both the old and the new computer systems are 3-year MACRS assets for depreciation purposes. Depreciation rates are 33 33% in year one, 44 44% in year two, 14 82% in year three, and 741% in year four. The company's tax rate is 40% If the new system is purchased the old computer system will be sold for 52,006 The old system originally cost $6,000 Additional networking capital of $600 will be required for this project . After 3 years, the new system will be obsolete and will be replaced. JB Enterprisen expects the salvage value of the new system to be $900 at the end of year three The net cash flow (NCF) for year two of teh project is A. $5,978 OB. $4.311 OC. 56,278 OD. 55,378