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Question Help Operating cash inflows Afirm is considering renewing its equipment to meet increased demand for its product. The cost of equipment modifications is $1.89 million plus $109,000 in instalation costs. The firm will depreciate the equipment modifications under MACRS, using a 5-year recovery period (see table . Additional sales revenue from the renewal should amount to $1.17 million per year and additional operating expenses and other co ncluding depreciation and interest will amount to 2% of the w a lls The is wuct to a tax rate of 40% (Note: Answer the blowing questions for each of the next years.) 2. What incrementalemings before depreciation, interest and we will trom the renewal b. What incrementalne operating profits there will result from the renewal? What incremental operating cash infows will result from the renewal? 0 Data Table The incremental profits before depreciation and tax Round to the nearest Pront before depreciation and taxes Depreciation Click on the loon here in order to be the contents of the datatable below into a spreadsheet) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year Recovery year years 7 years 33N 32% Twees Nel potere 15 Enter any number in the fields and then continue to the next

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