A piano manufacturer is considering a capital expenditure project that will involve purchasing and installing new equipment. The equipment cost will be $50,000, with an additional $8,000 for delivery, and installation is estimated to be $10,000. The equipment has an expected life of 10 years, and an estimated salvage value of $20,000. The project requires an additional working capital investment of $9,000. The project revenues are forecasted to be $30,000 per year and cash expenses are estimated at $15,000 per year. The firm has a 30% marginal tax rate and a 12% weighted average cost of capital (WACC). Calculate the annual net cash flows from this project.

a. $12,540 per year

b. $11,940 per year

c. $11,196.43 per year

d. $7,837.50 per year

e. none of the above