Windsor Corporation is considering an investment which will require the purchase of a machine. The machine costs $800,000 class life of 5 years, and will be depreciated using simplified straightline depreciation. The firm's marginal tax rate is 35%. The incremental cash inflows expected over the 5-year life of the project are $280,000 per year, and cash expenses are $80,000 per year. In addition, the new machine will reduce defects by 15,000 per year. The new machine will require a one-time increase in net working capital of $25,000 at the time of installation At the end of 5 years, the machine will be worthless, and the firm will not replace it. Calculate the annual cash flow resulting from this project.

a)176250

b)156750

c)195750

d)16250

e)35750