The Blue Lagoon Is Considering a Project with a Five-Year

The Blue Lagoon is considering a project with a five-year life.The project requires $110,000 of fixed assets that are classified as five-year property for MACRS.Variable costs equal 71 percent of sales,fixed costs are $9,600,and the tax rate is 35 percent.What is the operating cash flow for year 4 given the following sales estimates and MACRS depreciation allowance percentages?

A) -$1,806
B) $640
C) $1,809
D) $2,342
E) $2,811