Wright's Warehouse has the following projections for Year 1 of a capital budgeting project. Year 1 Incremental Projections: Sales $200,000 Variable Costs $120,000 Fixed Costs $40,000 Depreciation Expense $20,000 Tax Rate 40%

Calculate the operating cash flow for Year 1.

1. $52,000

2. $32,000

3. $72,000

4. $12,000