QUESTION $8$

XYZ operates indoor tracks. The firm is evaluating the Santa Fe project, which would involve opening a new indoor track, in Santa Fe$.$ During year $1,$ XYZ would have total revenue of $$179,000$ and total costs of $$78,800$ if it pursues the Santa Fe project, and the firm would have total revenue of $$147,000$ and total costs of $$72,000$ if it does not pursue the Santa Fe project. Depreciation taken by the firm would be $$75,400$ if the firm pursues the project and $$37,000$ if the firm does not pursue the project. The tax rate is $46\mathrm{.}00\%.$ What is the relevant operating cash flow $($OCF$)$ for year $1$ of the Santa Fe project that XYZ should use in its NPV analysis of the Santa Fe project?

$$39,128\mathrm{.}00($plus or minus $$1)$

$$13,928\mathrm{.}00($plus or minus $$1)$

$$31,272\mathrm{.}00($plus or minus $$1)$

$$45,200\mathrm{.}00($plus or minus $$1)$

None of the above is within $$1$ of the correct answer