A 6-year project is expected to provide annual sales of $197,000 with costs of $94,500. The equipment necessary for the project will cost $330,000 and will be depreciated on a straight-line method over the life of the project. You feel that both sales and costs are accurate to +/15 percent. The tax rate is 21 percent. What is the annual operating cash flow for the worst-case scenario?

Multiple Choice

$114,296

$70,429

$38,204

$57,982

$39,821