Burke's Corner currently sells blue jeans and T-shirts. Management is considering adding fleece tops to its inventory to provide a cooler weather option. The tops would sell for $57 each with expected sales of 4,000 tops annually. By adding the fleece tops, management feels the firm will sell an additional 255 pairs of jeans at $67 a pair and 390 fewer T-shirts at $28 each. The variable cost per unit is $35 on the jeans, $19 on the T-shirts, and $31 on the fleece tops. With the new item, the depreciation expense is $37,000 a year and the fixed costs are $72,000 annually. The tax rate is 21 percent. What is the project's operating cash flow?

Multiple Choice

$36,724

$41,336

$26,165

$25,778

$30,728