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 $172,000 and total costs of $78,500 if it pursues the Santa Fe project, and the firm would have total revenue of $157,000 and total costs of $70,600 if it does not pursue the Santa Fe project. Depreciation taken by the firm would be $77,400 if the firm pursues the project and $40,000 if the firm does not pursue the project. The tax rate is 41.70%. 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?

$25,564.90 (plus or minus $1)

$32,664.90 (plus or minus $1)

$45,300.00 (plus or minus $1)

$19,735.10 (plus or minus $1)

None of the above is within $1 of the correct answer