A project with a life of 7 years is expected to provide annual sales of $470,000 and costs of $341,000. The project will require an investment in equipment of $805,000, which will be depreciated on a straight-line method over the life of the project. You feel that both sales and costs are accurate to +/10 percent. The tax rate is 21 percent. What is the annual operating cash flow for the best-case scenario?

Multiple Choice

• $145,300

• $71,385

• $113,785

• $136,565

• $190,129