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)	$69,000
Sales revenues, each year	$60,000
Operating costs (excl. depr.)	$25,000
Tax rate	35.0%

	a.	$32,870
	b.	$35,635
	c.	$30,720
	d.	$37,785
	e.	$31,641