Mercy Hospital is considering a project that is expected to reduce the hospitals annual operating costs by $250,000 per year beginning in Year 1. In addition, the project is expected to generate $400,000 in revenue per year beginning in Year 1. All else held constant, what is the projects expected net cash flow in Year 1?

A

$150,000

B

$250,000

C

$400,000

D

$650,000

E

-$250,000