Given an effective income tax rate of 20% and using straight-line depreciation, what would be the projects net cash flow in Year 3?

A company is considering a capital project that includes the purchase of a new machine costing $100,000. The machines estimated useful life is five years with no salvage value. The annual operating cash inflows from the project are shown below.

Given an effective income tax rate of 20% and using straight-line depreciation, what would be the projects net cash flow in Year 3?

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