A 7-year project is expected to provide annual sales of $201,000 with costs of $95,000. The equipment necessary for the project will cost $335,000 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 +/-10 percent. The tax rate is 40 percent. What is the annual operating cash flow for the worst-case scenario?

Multiple Choice

• $45,840

• $100,503

• $49,703

• $64,983

• $73,383