As the result of purchasing new equipment costing $450,000, ABC Inc. expects the number of units it produces and sales will increase next year by 13%. This past year the firm sold 75 units at a price of $27,000 per unit and the cost to manufacture each unit was $3,400. ABC is in a 30% tax bracket. Assuming there are no other expenses, what is the expected incremental cash flow from operations next year? We ignore the impact of CCA and depreciation.

a. $1,400,070

b. $123,900

c. $230,100

d. $161,070

e. $2,000,100