17. Your boss is considering the purchase of new equipment. To begin the project, the equipment costs $510,000, and an additional $90,000 is needed to install it. An inventory investment cost of $75,000 is also required at the start of the project. The equipment will be depreciated straight-line to zero over a five-year life. The equipment will generate additional annual revenues of $280,000, and it will have annual cash operating expenses of $100,000. The equipment will be sold for $80,000 after five years. Your company is in the 28 percent tax bracket and its cost of capital is 12 percent.

What is the terminal year after-tax salvage value and What are the annual after-tax free cash flows for years 1-5?