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)$25,275.50 b) $30,359.25 c) $28,770.00 d) $26,162.50