The Sports Club wants to expand its facility. The expansion will require $350,000 in building improvements that will be depreciated on a straight-line basis over a 10-year period. The expanded area is expected to generate $250,000 in additional sales. Variable costs are 65 percent of sales and the annual fixed costs are $21,000. The tax rate is 28 percent. What is the operating cash flow for the first year of this project?
a. $57,467
b. $57,525
c. $57,680
d. $57,762
e. $57,800