Bad Company has a new 4-year project that will have annual sales of 9,300 units. The price per unit is $20.80 and the variable cost per unit is $8.55. The project will require fixed assets of $103,000, which will be depreciated on a 3-year MACRS schedule. The annual depreciation percentages are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent, respectively. Fixed costs are $43,000 per year and the tax rate is 34 percent. What is the operating cash flow for Year 3?

Multiple Choice

• $58,759

• $80,377

• $51,997

• $29,301

• $55,565