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 operating cash flow?
| Unit Sales |
2,900 |
| Price per Unit |
$220 |
| Variable Costs per Unit |
$160 |
| Fixed Costs |
$28,500 |
a. $119,775
b. $138,275
c. $153,075