Benson Industries Is Adding a New Assembly Line Which Will

Benson Industries is adding a new assembly line which will increase annual sales by $980,000 and cash expenses by $535,001. The project will require an initial investment in equipment of $1.2
Million. This equipment belongs in a 40% CCA class. The company has a marginal tax rate of 35%.
What is the operating cash flow in the first year of the project using the tax shield approach?

A) $205,250
B) $289,250
C) $314,500
D) $347,500
E) $373,250