A gym owner is considering opening a location on the other side of town. The new facility will cost$1.44 million and will be depreciated on a straight-line basis over a 20-year period. The new gym is expected to generate $553,000 in annual sales. Variable costs are 52 percent of sales, the annual fixed costs are $89,300, and the tax rate is 34 percent. What is the operating cash flow?

Multiple Choice

• $84,368
• $200,620
• $330,522
• $188,252
• $140,732