You are analyzing a project and have developed the following estimates. The depreciation is $72,000 a year and the tax rate is 35 percent. What is the best case (Upper Bound) operating cash flow?

Yr 1 | 2 | 3

Net Income $799 | $150 | $200

Cash Flow 750 | 1000 | 1200

Initial outlay $1500

Options:

$119,775

$138,275

$153,075

$164,775

$178,275