Clemson Software is considering a new project whose data are shown below. The required equipment has a 3-year tax life, after which it will be worthless. Under the new tax law, the equipment is eligible for 100% bonus depreciation, so it will be fully depreciated at t = 0. Revenues and operating costs are expected to be constant over the project's 3-year life. What is the project's Year 1 cash flow?

Equipment cost (depreciable basis)	$100,000
Sales revenues, each year	$56,700
Operating costs	$20,100
Tax rate	25.0%

a. $35,783

b. $36,600

c. $22,425

d. $29,280

e. $27,450