Problem: Payback; ARR Kurt's Office Services is evaluating the purchase of a state-of-the-art desktop publishing system that costs $40,000, has a six-year life, and has no salvage value at the end of its life. The company's controller estimates that the system will annually generate $13,500 of cash receipts and create $2,700 of cash operating costs. The company's tax rate is expected to be 30 percent during the life of the asset, and the company uses straight-line depreciation. a. Determine the annual after-tax cash flows from the project.