Question 26 (6 points) Soarin' Incorporated is considering a 10-year project to expand their business operation. The new project will require the purchase of $500,000 in depreciable equipment today. The equipment will be straight-line depreciated over a 10-year period to zero, and will have a market value of $80,000 in 10 years. The project will increase sales for the business by $225,000 per year. The cost of goods sold for this project will be 30% of sales, while other expenses (excluding depreciation and taxes) will be 10% of sales. The cost of capital for the firm is 10%, while the tax rate facing the firm is 30% What is the project cash flow for year 1? $87,750 $109,500 $130,250 O $107,500 $112,250