You are considering opening a cafe in near future. The cafe will have annual revenue of $300.000 and operating expenses of $150.000. The annual depreciation and amortisation for the assets used in the restaurant will equal $43,000. An annual capital expenditure of $10,000 will be required to offset wear and tear on the assets used in the restaurant, but no additions to working capital will be required. The company tax rate will be 35 percent. Calculate the incremental annual free cash flow for the project.

a). $197,500

b). $197,500

c). $265,400

d). $140,500

e). $120,550