Jefferson & Sons is evaluating a project that will increase annual sales by $70,000 and annual costs by $40,000. The project will initially require $150,000 in fixed assets that will be depreciated straight-line to a zero book value over the 1- year life of the project. The applicable tax rate is 34 percent. What is the operating cash flow for this project?

$32,000

$19,770

$15,150

$24,730