The Ally Gаtоr Cоrpоrаtion of Meаdville, PA, make of Ally’s electronic components, is considering replacing one of its current hand-operated assembly machines with a new fully automated machine. Existing situation: Original depreciable value of old machine - $80,000 Expected life - 10 years Age - 5 years old Expected salvage value in five years - $0 Current salvage value - $15,000 Marginal tax rate - 34 percent Proposed situation: Fully automated machine resulting in annual savings of $48,000 Cost of machine - $86,000 Installation fee - $8,000 Expected life - five years, depreciated down to $0 Salvage value in 5 years - $30,000 What are the relevant after-tax free cash flows?