Question $3$

$0\mathrm{.}5pts$

Following #$1,$ we'll assume the equipment is depreciated straight$-$line to a salvage value of zero. The project is estimated to generate $$500,000$ in annual sales, with costs of $$150,000.$ If the tax rate is $35\%,$ what is the operating cash flow $($OCF$)$ per year for this project?

$$32,500$

$$332,500$

$$50,000$

$$17,500$