As a member of UA Corporation's financial staff, you must estimate the Year 1 cash flow for a proposed project with the following data. Under the new tax law, the equipment used in the project is eligible for 100% bonus depreciation, so it will be fully depreciated at t = 0. What is the Year 1 cash flow?

Sales revenues, each year	$54,400
Operating costs	$20,700
Interest expense	$4,000
Tax rate	25.0%

a. $26,275

b. $29,275

c. $25,275

d. $33,700

e. $22,275