Shay Hand Outfitters has a proposed project that will generate sales of 3,100 units annually at a selling price of $37.00 each. The fixed costs are $25,000 and the variable costs per unit are $11.95. The project requires $72,000 of fixed assets. The salvage value of the assets is $9,700 and the tax rate is 21 percent. What is the operating cash flow for Year 4?
Multiple Choice:
A. $45,377.45
B. $27,377.45
C. $41,597.45
D. $52,655.00
E. $22,564.00