The Beer Brewing Company Is Interested in a New Eight-Year

The Beer Brewing Company is interested in a new eight-year project.The project calls for an initial cash outlay of $1,000,000: $850,000 for new equipment,$100,000 for installation costs,and $50,000 for additional net working capital.The asset has a CCA rate of 30 percent and an expected salvage value of $75,000.The project will generate additional operating profit of $325,000 per year.What is the UCC at the end of year 3?

A) $395,675
B) $325,850
C) $354,025
D) $416,500