A factory is considering a nine-year project to improve its production efficiency. Buying a new piece of equipment would cost $540,000. It is expected to result in $105,000 in savings, per year, before taxes. This piece of equipment has a 6-year economic life and it would follow the straight line depreciation method. Its salvage value at the end of the project is estimated at $70,000. The equipment also requires an immediate investment in spare parts inventory of $20,000. The company will require additional $500 in inventory in each succeeding year of the project. The company's tax rate is 28 percent. The appropriate discount rate is 9 percent.

Calculate the annual Operating Cash Flow.

HINT: You WILL NOT need to use all numbers given in this problem to answer this question!

Group of answer choices

$92,250

$98,750

$100,800

$105,000

$108,720