A company is considering a new four year expansion project that requires an initial fixed asset investment of $1.5 million. The fixed asset will be depreciated straight line to zero over its three year tax life, after which time it will be worthless. The project is expected to generate $2,500,000 in sales, with costs of $950,000. The company is financed with all equity. If the tax rate is 30%, what is the operating cash flow for this project?

Answers:	a. $315,000
b. $1,050,000
c. $500,000
d. $1,235,000