Your company is considering replacing a piece of old equipment with a piece of new equipment. Details for both are given below: New Equipment Old Equipment Current book value Current market value$2,500,000Acquisition cost Remaining life Annual sales Cash operating expenses $140,000 Cash operating expenses $500,000 Annual depreciation $180,000 Annual depreciation$620,000 Accounting salvage value S0 Expected salvage value $240,000 Expected salvage value $750,000 $1,500,000 10 years Life S350,000 Annual sales $6,200,000 10 years $850,000 Accounting salvage value$0 The new equipment will require an additional investment of $250,000 in working capital. The tax rate is 35% . Your company's incremental annual after-tax operating cash flow resulting from the investment in the new equipment is closest to: A) -$195,000 B) $82,500 C) $199,500 D) $245,000 E) $444,500