Hansel's Outings Is Considering Opening a New Wilderness Trail for Tourists

Hansel's Outings is considering opening a new wilderness trail for tourists. The trail will require $120,000 in fixed assets such as emergency shelters, rest rooms, and first aid stations plus an
Additional $40,000 in net working capital. The project is expected to produce tourism revenue of
$140,000 annually. The annual cash expenses are projected at $75,001. The assets associated with
The project belong in a 25% CCA class. The tax rate is 34%. What is the operating cash flow in the
first year for this project?

A) $33,000
B) $48,000
C) $49,700
D) $50,000
E) $53,100