A company is considering investing in expanding its business. The total cost of the expansion will be $575,000, of which $250,000 will be in depreciable assets. The company's tax rate is 35% and the company uses the 5 year MACRS depreciation table (below). If the company expects $160,000 in incremental EBDT in year 1, calculate its cash flow for year 1 (to be used in capital budgeting analyses).

MACRS 5 year Table
Year 1	0.2
Year 2	0.32
Year 3	0.192
Year 4	0.115
Year 5	0.115
Year 6	0.058

A $50,000.00

B $110,000.00

C $71,500.00

D $121,500.00