Elsinore Company is considering the purchase of a new brewing equipment. The new brewing equipment will be depreciated using the MACRS 5-year class. The equipment has an estimated life of 4 years. It costs $100,000, and Elsinore plans to sell the brewing equipment at the end of the fourth year for $10,000. The new brewing equipment is expected to generate new sales of $35,000 per year and the firm will recelve cost savings of $1000 per year as well. In addition, the company will need to increase inventory by $2500 and accounts payable will also increase by $1500. The company's tax rate is 20 percent. (Numbers in parentheses are negative) Syr MACRS Class Year 3 yr 1 33.33% 20.00% 2 44.45% 32.00% 3 14.81% 19.20% 4 7.41% 11.52% 5 11.52% 6 5.76% 7 7yr 14.29% 24.49% 17.49% 12.49% 8.93% 8.92% 8.93% 4.46% What would be the operating cash flow in year 1 (t-1)? $31,200 $29.600 $34.932