You are preparing your cash flow statement. You borrowed a $100,000 loan at the beginning of the year that had an interest rate of 5 percent and a term of 10 years (this is the first year you are making payments). You had the following operational cash flow and were taxed at 35 percent.

What will be the TAX for the first year?

EBITDA	80,000
Interest	5,000
Depreciation	15,000
EBT
Tax
Net Income
Depreciation	15,000
Principal	7,950
Net Cash Flow

Select one:

a.

35,000

b.

29,750

c.

31,500

d.

21,000