A project with a life of 7 years is expected to provide annual sales of $390,000 and costs of $277,000. The project will require an investment in equipment of $685,000, 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 40 percent. What is the annual operating cash flow for the best-case scenario?

Multiple Choice

A. $66,923 B. $111,023 C. $146,963 D. $128,993 E. $107,820