Cash Flow Estimation for Machinery Investment

As a financial analyst for a mid-sized manufacturing company, you are tasked with evaluating the feasibility of purchasing new machinery that is expected to enhance operational efficiency. The initial cost of the machinery is $500,000, and it is anticipated to generate $150,000 in additional cash flows annually for 5 years. After the fifth year, the machinery will have a salvage value of $50,000. In preparing a cash flow analysis, which of the following should be included in the calculation of the annual cash flows for the machinery?