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

A. a. 25,000 b. 23,000 c. 31,000 d. 16,000
B. a. 25,000 b. 28,000 c. 37,000 d. 16,000
C. a. 26,000 b. 28,000 c. 31,000 d. 16,000
D. a. 25,000 b. 28,000 c. 31,000 d. 16,000