A construction company is considering acquiring a new earthmover. The purchase price is $125,000, and an additional $25,000 is required to modify the equipment for special use by the company. The equipment has a CCA rate of 30%, and it will be sold after five years (the project life) for $50,000. The purchase of the earth- mover will have no effect on revenues, but the machine is expected to save the firm $60,000 per year in before-tax operating costs, mainly labour. The firm's marginal tax rate is 40%. 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 present worth of the investment for this project if the firm's MARR is known to be 12%