Kyoto Sushi Incorporated is considering the replacement of their sushi display cases. The current cases were purchased 3 years ago at a total cost of $40,000 and are being depreciated straight-line to a zero value over 8 years. If Kyoto Sushi sell these sushi display cases at the following prices, what are the after-tax cash flows to Kyoto Sushi? Use 40 percent for the effective tax rate.

a. $25,000

b. $30,000

c. $35,000

d. $10,000