McGilla has decided to sell a new line of golf clubs. The clubs will sell for $1,600 per set (i.e., per unit), have a variable cost of $700 per set and fixed costs each year will be $600,000. The plant and equipment required will cost $1.2 million and will be depreciated straight-line to zero book value over 8-year life. If the required return on the project is 14 percent and tax rate is zero (i.e.,ignore taxes):

Find the firms operating cash flow (OCF) if the firm just breaks-even on an accounting basis

	a.	$150,000
	b.	$200,000
	c.	$110,000
	d.	$170,000