A gym owner is considering opening a location on the other side of town. The new facility will cost $1.38 million and will be depreciated on a straight-line basis over a 20-year period. The new gym is expected to generate $541,000 in annual sales. Variable costs are 52 percent of sales, the annual fixed costs are $86,900, and the tax rate is 21 percent. What is the operating cash flow?

Multiple Choice

$150,986

$82,205

$196,240

$323,166

$183,035