Jack Ltd is looking at a project that will require $80,000 in fixed assets. The project is expected to produce cash sales of $110,000 with associated cash costs of $70,000. The project has a 5-year life. The company uses straight-line depreciation to a zero book value over the life of the project. The tax rate is 30 percent. What is the annual operating cash flow for this project?

a.

$32,800

b.

$44,000

c.

$40,000

d.

$28,000