Peter's Boats expects cash sales of $680,000 and expenses (Cost of Goods Sold and Selling and Administrative expenses) of $644,640 over each of the next three years. In addition, the annual depreciation expense is $74,000, and the tax rate is 34 percent. What is the cash flow that the company can expect in each of the next three years?

a. $48,498

b. $86,502

c. $109,360

d. $473,960

e. $399,960