Clemson Software is considering a new project whose data are shown below. The required equipment has a 3-year tax life, after which it will be worthless. Under the new tax law, the equipment is eligible for 100% bonus depreciation, so it will be fully depreciated at t = 0. Revenues and operating costs are expected to be constant over the project's 3-year life. What is the project's Year 1 cash flow?

Equipment cost (depreciable basis)	$100,000
Sales revenues, each year	$54,500
Operating costs	$23,600
Tax rate	25.0%

a. $31,508

b. $17,275

c. $30,900

d. $24,720

e. $23,175