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 $54,600

Operating costs $23,700

Tax rate 25.0%

a. $17,250

b. $31,508

c. $23,175

d. $24,720

e. $30,900