$-16$ Operating cash inflows A firm is considering renewing creased demand for its product. The cost of equipment modifications is $$1\mathrm{.}9$ milli plus $$100,000$ in installation costs. The firm will depreciate the equipment modif tions under MACRS, using a five$-$year recovery period. $($See Table $4\mathrm{.}2$ for the applicable depreciation percentages.$)$ Additional sales revenue from the renewal sho amount to $$1,200,000$ per year, and additional operating expenses and other cos $($excluding depreciation and interest$)$ will amount to $40\%$ of the additional sales The firm is subject to a tax rate of $21\%.($Note: Answer the following questions each of the next six years.$)$

a$.$ What net incremental earnings before interest, taxes, depreciation, and amos tion will result from the renewal?

b$.$ What net incremental operating profits after taxes will result from the renev

c$.$ What net incremental operating cash flows will result from the renewal?