You are evaluating a project for The Dogs, that involves the purchase of a new dog biscuit making machine. The project has a three year life and you estimate the project will increase revenues by $$157,000$ and will increase costs by $$30,000$ each year. The project requires an initial investment of $$120,000$ which is depreciated on a straight$-$line basis to zero over the $3$ year project life. The machine will be sold at the end of the project for $$35,000.$ The initial net working capital investment required for this project is $$20,000$ which will be recovered at the end of the project$$s life. The tax rate is $25\%$ and the required return on the project is $10\%.$

What is the total cash flow for the project in year $3?$

Multiple Choice

$$105,250$

$$151,500$

$$131,500$

$$125,250$