Hunter's Hut is considering adding a new product line that is expected to increase annual sales by $930,000 and cash expenses by $498,000. The initial investment will require $520,500 in fixed assets that will be depreciated using the straight-line method to a zero book value over the five-year life of the project. The market value of the asset at the end of the project will be $185,000. The project requires an initial investment in net working capital of $19,800, all of which will be recovered at the end of the project. The company has a marginal tax rate of 21 percent. What is the operating cash flow?
a. $294,853
b. $363,141
c. $438,201
d. $525,489
e. $590,620