A piece of equipment owned by Rocky River Kayak Co. needs to be replaced and can be sold immediately for $22,000. If not replaced immediately, it can be used for the next eight years when its salvage value will be $3,000. The new equipment will also have a useful life of eight years when it can be sold for 10% of its current acquisition cost of $160,000. If purchased, the new equipment will have the following associated costs: shipping - $4,500; sales tax - $9,600; and, installation - $5,000. By replacing the old equipment, Rocky River will be able to increase annual sales from 2,000 units to 4,000 units. The following table lists details of sales price and production costs.

What is the incremental annual total cash flow from the new machine in year 8, including operating cash flow and cash flow from salvage?

$54,000

$31,000

$16,000

$57,000