Kurt's Kabinets Is Looking at a Project That Will Require

Kurt's Kabinets is looking at a project that will require $80,000 in fixed assets and another $20,000 in net working capital.The project is expected to produce sales of $138,000 with associated costs of $74,000.The project has a 4-year life.The company uses straight-line depreciation to a zero book value over the life of the project.The tax rate is 34 percent.What is the operating cash flow for this project?

A) $42,240
B) $62,240
C) $35,440
D) $49,040
E) $69,040