A gym owner is considering opening a location on the other side of town. The new facility will cost $1.35 million and will be depreciated on a straight-line basis over a 20-year period. The new gym is expected to generate $535,000 in annual sales. Variable costs are 48 percent of sales, the annual fixed costs are $85,700, and the tax rate is 35 percent. What is the operating cash flow?

Multiple Choice A.$91,000

B $148,750

C $315,670

D $216,125

E $192,625