Theresa is considering starting a small business. She plans to purchase equipment costing $142,000. Rent on the building used by the business will be $22,500 per year while other operating costs will total $28,200 per year. A market research specialist estimates that Theresa's annual sales from the business will amount to $85,500. Theresa plans to operate the business for 6 years. Disregarding the effects of taxes, what will be the amount of annual net cash flow generated by the business?
A. $34,800
B. $85,500
C. $50,700
D. None of these answers is correct.
Answer: A
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