You are reviewing a capital budgeting proposal for your company. Your company is considering investing in a new machine. The details of the proposal are as follows: The machine costs $500,000. The machine will be depreciated using the straight-line method to zero over a five- year life. During the life of the machine, an inventory investment of $80,000 is required. The machine is expected to generate additional revenues of $350,000 per year The machine is expected to reduce your company's cash operating expenses by $20,000 per year. After five years, the machine will be sold for $90,000. Your company is in the 35% tax bracket and its cost of capital is 12%. . . . . . . Your company's incremental annual after-tax operating cash flow is closest to: A) $175,500 B) $272,700 C) $275,500 D) $287,200 E) $379,500