A gym owner is considering opening a location on the other side of town. The new facility will cost $1.45 million and will be depreciated on a straight-line basis over a 20-year period. The new gym is expected to generate $555,000 in annual sales. Variable costs are 51 percent of sales, the annual fixed costs are $89,700, and the tax rate is 21 percent. What is the operating cash flow?

Multiple Choice

$207,625

$327,820

$190,963

$159,203

$89,163