1. 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 $166,000 and total costs of $77,600 if it pursues the Santa Fe project, and the firm would have total revenue of $155,000 and total costs of $71,400 if it does not pursue the Santa Fe project. Depreciation taken by the firm would be $77,800 if the firm pursues the project and $39,200 if the firm does not pursue the project. The tax rate is 49.80%. 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?

   		$21,632.40 (plus or minus $1)
   		$27,967.60 (plus or minus $1)
   		$23,167.60 (plus or minus $1)
   		$44,800.00 (plus or minus $1)
   		None of the above is within $1 of the correct answer