Theresa Is Considering Starting a Small Business

Theresa is considering starting a small business. She plans to purchase equipment costing $143,000. Rent on the building used by the business will be $23,000 per year while other operating costs will total $28,800 per year. A market research specialist estimates that Theresa's annual sales from the business will amount to $87,000. Theresa plans to operate the business for 6 years. Disregarding the effects of taxes, what will be the amount of annual net cash flow generated by the business?

A) $35,200
B) $51,800
C) $87,000
D) None of these answers is correct.