Toronto Skates Corp

Toronto Skates Corp.is considering a five-year project that requires an initial investment of $250,000.The project is expected to generate operating incomes of $60,000 in year 1,$90,000 in year 2,$150,000 in year 3,$100,000 in year 4,and $80,000 in year 5.The asset belongs to asset class 7,which has a CCA rate of 15 percent.The firm's marginal tax rate is 35 percent and cost of capital is 10 percent.What is the present value of the after-tax operating cash flows?

A) $205,272
B) $233,739
C) $315,804
D) $359,598