Sam's Sports Bar wants to expand their facility. The expansion will require $330,000 in building improvements, which will be depreciated on a straight-line basis over a 20-year period. The expanded area is expected to generate $120,000 in additional sales of which 60 percent is variable cost. The fixed costs are $10,000 annually and the tax rate is 35 percent. What is the operating cash flow for the first year of this project?

	a.	$40,200
	b.	$36,895
	c.	$30,475
	d.	$24,700
	e.	$27,025