A construction company is considering acquiring a new earthmover. The purchase price is $110000, and an additional$25000 is required to modify the equipment for special use by the company. The equipment falls into the MACRS seven-year classification (the tax life), and it will be sold after five years (the project life) for $50000. The purchase of the earthmover will have no effect on revenues, but the machine is expected to save the firm $68000 per year in before-tax operating costs, mainly labor. The firm's marginal tax rate is25%. Assume that the initial investment is to be financed by a bank loan at an interest rate of 10% payable annually. Determine the after-tax cash flows by using the generalized cash flow approach and the worth of the investment for this project if thefirm's MARR is known to be 12%.

Fill in the table below. (Round to the nearest dollar.) Net After-Tax Cash Flow Period 0 1 $ $ 2