A project is expected to increase a firm's sales revenues by $100,000 annually, increase its cash expenses by $4,500 annually, and increase its depreciation by $30,000 annually. The project has an expected economic life of 7 years. What is the net cash flow each year? Use 40 percent for the effective tax rate. Assume there is no working capital to be liquidated at the end of 7 years, and there is also no salvage value at the end of 7 years.

A. 54,000
B. 40,500
C. 45,000
D. 42,500