X Company is considering a new processor that costs $150,000. Shipping and setup costs for the new processor are estimated to be $15,000. Xs working capital requirement is expected to increase by $17,000 when the new processor begins operation and is expected to be fully recoverable at the end of the project. The new processors useful life is expected to be 5 years and its salvage value at that point is estimated to be $60,000. The new processor is being depreciated using a 5-year ACRS life. Assume a tax rate of 35% and a cost of capital of 12%. Estimated incremental revenues and incremental cash operating expenses for the new processor before tax for each year are shown in the table below. Year Revenues Operating Expenses 1: $87,000 $23,000 2: $82,000 $25,000 3: $93,000 $30,000 4: $87,000 $23,000 5: $88,000 $29,000 The processor will be depreciated to a zero book value using the following annual depreciation rates that are applied to the original installed cost. Year Depreciation % 1: 15 2: 22 3 - 5: 21 A) What is the book value of the new processor at the end of Year 3? B) What is the incremental after-tax cash flows in Year 4? C) What is the total after-tax cash flows in Year 5? Total means incremental cash flows plus terminal cash flows.