A replacement project will annually generate additional revenues of $750,000. It has fixed and variable costs totaling $300,000. It will increase...

A replacement project will annually generate additional revenues of $750,000. It has fixed and variable costs totaling $300,000. It will increase depreciation costs by $320,000. The firm has a marginal tax rate of 40%. What is the projection for the firm's operating cash flow for this replacement project?

$52,000

$130,000

$398,000

$78,000