Bennett Co. has a potential new project that is expected to generate annual revenues of $265,700 with variable costs of $145,600 and fixed cost of $62,500. To finance the new project the company will need to issue new debt that will have an annual interest expense of $26,500. The annual depreciation is $26,000 and the tax rate is 35 percent. What is the annual operating cash flow?

1. $83,600

2. $182,612

3. $40,200

4. $46,540

5. $129,200