SpaceTech Is Considering a New Project with the Following Projections

Multiple Choice

SpaceTech is considering a new project with the following projections for Year 2. Year 2 Projections
EBIT $400,000
Interest Expense $20,000
Depreciation Expense $40,000
Tax Rate 40%
Incremental Net Working
Capital Needs $200,000
Compute the operating cash flow for year 2.

A) $80,000
B) $180,000
C) $240,000
D) $280,000