Munir S/B has provided the following data concerning a proposed investment project:

	Initial investment..................	$861,000
	Annual net cash receipts......	$271,000
	Life of the project.................	5 years
	Salvage value......................	$129,000

The company's tax rate is 30%. For tax purposes, the straight line method will be used and capital allowances (CA)s will be claimed only over 3 years over the entire initial cost without any reduction for salvage value. The company uses a discount rate of 11%.

Required:

(ii)Calculate the taxable cash flows for years 1-3

A.

($16,000) (i.e. negative taxable cashfows) per year

B.

$287,000 per year

C.

$271,000 per year

D.

none of the above