5. XYZ operates indoor tracks. The firm is evaluating the Santa Fe project, which would involve opening a new indoor track in Santa Fe. During year 1, XYZ would have total revenue of $179,000 and total costs of $76,100 if it

pursues the Santa Fe project, and the firm would have total revenue of $146,000 and total costs of $72,400 if it does not pursue the Santa Fe project. Depreciation taken by the firm would be $75,200 if the firm pursues

the project and $39,300 if the firm does not pursue the project. The tax rate is 48.80%. What is the relevant operating cash flow (OCF) for year 1 of the Santa Fe project that XYZ should use in its NPV analysis of the Santa

Fe project?

O $7,079.20 (plus or minus $1)

O $36,379.20 (plus or minus $1)

O $32,520.80 (plus or minus $1)

O $39,600.00 (plus or minus $1)

O None of the above is within $1 of the correct answer