A Project Will Increase Sales by $60,000 and Cash Expenses

A project will increase sales by $60,000 and cash expenses by $41,000.The project will cost $40,000 and be depreciated using straight-line depreciation to a zero book value over the 4-year life of the project.The company has a marginal tax rate of 35 percent.What is the operating cash flow of the project using the tax shield approach?

A) $12,350
B) $8,650
C) $15,850
D) $13,150
E) $10,350