Lendrum Inc. is considering a new project whose data are shown below. The equipment has an economic life of 3 years, and is in CCA class 10 (30%). The half-year rule applies. Revenues and cash operating costs are expected to be constant over the projects 3-year life. What is the net operating cash flow for Year 1?

		Equipment cost		$65,000
		Annual sales revenues		$60,000
		Annual cash operating costs		$25,000
		Tax rate		35.0%

a.

$28,770.00

b.

$26,162.50

c.

$25,275.50

d.

$30,359.25