Franco is considering the purchase of new equipment. To begin the project, the equipment costs $350,000, and an additional $90,000 is needed to install it. An inventory investment cost of $75,000 is also required at the start of the project. The equipment will be depreciated straight-line to zero over a five-year life. The equipment will generate additional annual revenues of $280,000, and it will have annual cash operating expenses of $80,000. The equipment will be sold for $80,000 after five years. Franco is in the 40 percent tax bracket and its cost of capital is 10 percent. What are the annual after-tax free cash flows operating cash flows) for years 1.5? $108,000 $139,600 $155,200 $104.000