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 $169,000 and total costs of $79,000 if it pursues the Santa Fe project, and the firm would have total revenue of $156,000 and total costs of $70,000 if it does not pursue the Santa Fe project. Depreciation taken by the firm would be $75,000 if the firm pursues the project and $39,000 if the firm does not pursue the project. The tax rate is 48.90%. 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?

Answers:-

$25,352.00 (plus or minus $1)
		$19,648.00 (plus or minus $1)
		$45,000.00 (plus or minus $1)
		$29,352.00 (plus or minus $1)
		None of the above is within $1 of the correct answer