Use this information for the next $2$ questions. Note: read the questions below FIRST to see what you'll

need to calculate. This may save you time! UTK, Inc. is considering introducing a new bobblehead doll.

Each doll costs $$1\mathrm{.}00$ to make and will sell for $$6\mathrm{.}00.$ Packaging machinery will cost $$100,000,$ including

shipping and installation. Sales are expected to be $100,000$ dolls in Year $1,150,000$ dolls in Year $2$ and

$200,000$ dolls in Year $3$ after which the equipment will be sold, and the production line shut down. The

equipment will be sold for $$60,000$ at the end of $3$ years. The machinery will be depreciated using the $5-$

year MACRS depreciation schedule, shown below. Working capital in the amount of $11\mathrm{.}0\%$ of the current

years' sales will be required to be in place at the beginning of the year $($that is$,$ will be required to be in

place at the end of the previous year$).$ UTK's tax rate is $25\%.$

Calculate the required incremental investment in working capital in Year $1.$

a$.22,539$

b$.,24,793$

c$.,27,273$

d$.,30,000$

e$.33,000$