Tremont Designs is considering replacing one of its machines. The current equipment was purchased 5 years ago, and its installed cost was $225,000. At that time it was estimated to have a useful life of 10 years. The machine is being depreciated using the simplified straight-line method and its market value today is $10,000. Six full-time machine operators are required to operate the machine. Each is paid a $40,000 annual salary. The existing machine creates about $20,000 worth of defects per year, and costs $5,000 per year to maintain.

The proposed machine costs $390,000, requires the company to spend $30,000 for shipping and installation. If purchased, it will be depreciated to a zero book balance using straight line depreciation over its 5-year expected useful life. Though the firm does not expect revenues to increase with the new machine, the newer model is more efficient and less labor intensive. As a result only three machine operators are required, the cost of defects would drop to $8,000 per year, and maintenance would now reach $12,000 annually. Green expects to the proposed new machine to have a $64,000 market value at the end this time. The firms total marginal tax rateboth state and federalis 21%.

What are the annual after-tax cash flows associated with this project (OCFs), for years 1 through 4?