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The Completely Natural Gardening Center is considering installing a new overhead sprinkling system. The expected net increase in annual operating cash flows is $40,000 and

The Completely Natural Gardening Center is considering installing a new overhead sprinkling system. The expected net increase in annual operating cash flows is $40,000 and the expected net increase in annual depreciation charges is $8,000. If Completely Natural has a 40 percent tax rate, the annual incremental cash flow is ________.

Select one:

A. $24,000

B. $27,200

C. $32,000

D. $28,800

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