Tully's Tool and Die Has the Following Projections for Year

Multiple Choice

Tully's Tool and Die has the following projections for Year 1 of a capital budgeting project. Year 1 Incremental Projections:
Sales $400,000
Variable Costs $240,000
Fixed Costs $80,000
Depreciation Expense $40,000
Tax Rate 35%
Calculate the operating cash flow for Year 1.

A) $26,000
B) $66,000
C) $40,000
D) $38,200