Hawkeye innovations is considering developing a new type of mouse trap. They have made the following estimates regarding the development of the new product. The life of the project is 7 years The project will require additional equipment that will cost $21,000. None of the equipment will have any salvage value Sales are expected to be 10,000 units per year at $4.50 per unit Variable costs are expected to be $2.60 per unit The annual depreciation expense would be $3,000 Additional net working capital will be needed in year 0 in the amount of $8,000. 60% of this will be recovered in year 7 The companies tax rate is 34% The required rate of return on this project is 10% What is the projects operating cash flow?

A. $45,000

B. $4,000

C. $5,640

D. $2,640