A project with a life of 8 years is expected to provide annual sales of $440,000 and costs of $317,000. The project will require an investment in equipment of $760,000, 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 +/15 percent. The tax rate is 21 percent. What is the annual operating cash flow for the best-case scenario?

Multiple Choice

• $206,825

• $151,525

• $153,758

• $39,393

• $116,043