Maximum, Inc. is considering a new six-year expansion project that requires an initial fixed asset investment of $100,000. The fixed assets will be depreciated using the 5-year MACRS class. The project is estimated to generate $150,000 in annual sales, with costs of $80,000. If the tax rate is 35% and the company uses a discount rate of 10%, what are the operating cash flows for this project in year 1?

Multiple choice question.

$45,500

$84,500

$32,500

$52,500