A gym owner is considering opening a location on the other side of town. The new facility will cost $1.55 million and will be depreciated on a straight-line basis over a 20-year period. The new gym is expected to generate $575,000 in annual sales. Variable costs are 41 percent of sales, the annual fixed costs are $93,700, and the tax rate is 40 percent. What is the operating cash flow? Multiple Choice

A. $224,830

B. $276,550

C. $129,220

D. $319,780

E. $178,330