Chester's has a proposed project that will generate sales of 4,000 units at a selling price of $56 each. The fixed costs are $35,000 and the variable costs per unit are $31. The project requires $50,000 of fixed assets that will be depreciated on a straight-line basis to a zero book value over the 5-year life of the project. The salvage value of the fixed assets is $14,000 and the tax rate is 25 percent.

What is the after-tax cash flow for the final year?

a. $61,050

b. $61,550

c. $61,750

d. $62,250

e. $62,875