Use the Following Information to Answer the Question Below

Use the following information to answer the question below.
You have been asked by the CEO of Gastric Anxiety Supplier (GAS) to evaluate the proposed acquisition of a new Standardized Test Templater (PowerPoint based) for the firm's accounting area. A recently completed $100,000 marketing survey demonstrates a high demand for the product. The equipment's basic price is $740,000 and it would cost another $220,000 to modify it for high altitude (Wasatch Mountain) use. The templater will be assigned to an asset class with a CCA rate of 60% declining balance. It will be sold after 3 years for $200,000. Use of the equipment would require a one-time increase in net working capital (spare parts inventory) of $75,000. The templater would have no effect on revenues, but it is expected to save the firm $440,000 per year in pre-tax operating costs, mainly labor. The firm's tax rate is 40 percent. Gastric uses a discount rate of 20%.
-What will be the additional (non operating) non operating cash flow in year 3?

A) $200,000
B) $264,000
C) $390,720
D) $275,000