Your Local Athletic Center Is Planning a $1

Your local athletic center is planning a $1.23 million expansion to its current facility.This cost will be depreciated on a straight-line basis over a 20-year period.The expanded area is expected to generate $524,000 in additional annual sales.Variable costs are 48 percent of sales,the annual fixed costs are $79,400,and the tax rate is 35 percent.What is the operating cash flow for the first year of this project?

A) $118,336
B) $122,509
C) $147,027
D) $166,667
E) $219,323