Looks like they are about $68 million under last season's luxury tax limit. Arbitration might take up about $20 million (Hoskins, Eflin, Alvarado, Dominguez, Haseley might be all they offer it to and note the last 2 will be tiny $1-$2 million rewards). Then there is the likelihood that the threshold increases somewhat as its slow rise was a major point of contention.
The question of whether they can afford a big hitter is easily answered and that is yes. The question of whether it is wise to go after a Correa or a Castellanos is completely different.