Verona Inc. is determining the current value per common share for the company using the capitalized cash flow approach. It plans to average the earnings from the last three years equally. Select information is as follows (in thousands): Year 3 Year 2 Year 1 Net income before income taxes $330 $235 $300 Other financial information Management salaries (210) (210) (200) Lawsuit settlement (35) Amortization (40) (40) (55) Income tax expense (83) (59) (75) Additional information: Management salaries are low compared to the market; a more reasonable amount would be $350,000 per year. The lawsuit settlement is a one-time expenditure. In addition, in Year 2, a sales employee was terminated with a severance of $30,000, which is also considered a one-time expenditure. The income tax rate is 25%. Sustaining capital investments, net of CCA tax shield, are expected to be $60,000. Which one of the following is the normalized maintainable discretionary cash flow that will be used in the calculation of Verona's value? Question 1 options: a) $83,750 b) $98,750 c) $151,667 d) $158,750