A project with a life of 7 years is expected to provide annual sales of $350,000 and costs of $245,000. The project will require an investment in equipment of $625,000, 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?

• $148,705

• $60,825

• $113,500

• $106,925

• $88,825