You are performing a capital budgeting (capital planning) analysis and are considering a five-year project that would provide $42,500 a year in sales with $17,000 in cash operating costs. It would cost $50,000 and would be fully- depreciated straight-line over 5 years. Interest expenses for the company are expected to be $4,000 per year. The company tax rate is 35%. What is the appropriate cash flow to use for the project in year 1 of your analysis?

a. 20,080 b. 19,070 c. 18,120 d. 17,210 e. 16,350