A company is considering of purchasing a testing equipment costing $50,000. This equipment is expected to reduce labor costs by $16,000 annually. The equipment has useful life of 5 years, but falls in the 3-year property class for depreciation purpose. No salvage value is expected at the end. The marginal tax rate is 34% and its required after-tax rate of return is 16%. (Questions 56-57) What is the incremental after-tax cash flow for the first year of operation? O $14,600.70 $16,000.00 $19,734.50 $10,400.00 None of above $17,399.30