You are analyzing a proposed 3 year project. You expect to sell 11,500 units per year at an average selling price of RM19.99 per unit. The initial cash outlay for fixed assets will be RM120,000. These assets will be depreciated using straight line depreciation to a zero book value over the life of the project. Fixed costs are expected to be RM85,996 and variable costs should be RM7.65 per unit. What is the expected operating cash flow if the tax rate is 35 percent?

Select one:

a. RM10,344.

b. RM50,344.

c. RM40,344.

d. RM55,914.