Fool Proof Software is considering a new project whose data are shown below. The equipment that would be used has a 3-year tax life, and the allowed depreciation rates for such property are 33%, 45%, 15%, and 7% for Years 1 through 4. Revenues and other operating costs are expected to be constant over the project's 10-year expected life. What is the Year 1 cash flow?

Equipment cost (depreciable basis) $42,000

Sales revenues, each year $60,000

Operating costs (excl. depr.) $25,000

Tax rate 35.0%

a. $29,533

b. $27,601

c. $22,909

d. $33,121

e. $33,397