ChexPro Corporation is considering an expansion project that requires an initial fixed asset investment of $2,750,000. The fixed assets will be depreciated over 5 years using straight-line (not MACRS) with no residual value. The project will generate annual sales of $3,190,000, cash costs of $2,365,000 (costs DO NOT include depreciation expense) and the tax rate is 25%.

What is the annual operating cash flow of the project?

Group of answer choices

$825,000

$756,250

$725,250

$206,250