The Ally Gator Corporation of Meadville, PA, make of Ally's electronic components, is considering replacing one of its current handoperated assembly machines with a new fully automated machine: Existing situation: Original depreciable value of old machine $50,000 Expected life -10 years Age - 5 years old Expected salvage value in five years - So Current salvage value $15,000 Marginal tax rate - 34 percent Proposed situation: Fully automated machine resulting in annual savings of $36,000 Cost of machine - $86,000 Installation fee $4,000 Expected life-five years, depreciated down to $0 Salvage value in 5 years - $30,000 What are the relevant after-tax free cash flows? $28,180 $27,892 $28,852 $29,880