问题如下：
Company M is purchasing an equipment of $250,000 which will be depreciated straight-line to zero over five years. Annual revenues and annual cash operating expenses are expected to be $122,000 and $65,000 respectively. An inventory investment of $20,000 is required over the project’s life. The company is in the 25% tax bracket. What`s the after-tax operating cash flow in year three?
选项：
A.$92,750.
B.$64,250.
C.$55,250.
解释：
C is correct.
考点：Cash Flow Projections: Expansion Project
解析：首先求得Depreciation = $250,000/5 = $50,000.
根据公式CF = (S – C – D)*(1 –T) + D = (122,000 – 65,000 – 50,000)*(1 – 0.25) + 50,000 = $55,250.
题目中的inventory investment是什么意思？在题目中完全没用到，第一次做题的时候理解成了是残差的意思，也就是说这笔货物必须留20000作为存货。
