1. PR Company is considering an investment in new machinery. If the new machinery is purchased, revenues will increase from $68,000 to $87,250 and cash operating costs will decline from $55,000 to $49,500. The machinery will cost $63,500 with a $2,500 and $3,250 shipping and installation cost respectively, and will be depreciated on a straight-line basis over 10 years to a zero estimated salvage value. PR Company's marginal tax rate is 40%. Determine the annual net cash flows . PR Company is considering an investment in new machinery. If the new machinery is purchased, revenues will increase from $68,000 to $87,250 and cash operating costs will decline from $55,000 to $49,500. The machinery will cost $63,500 with a $2,500 and $3,250 shipping and installation cost respectively, and will be depreciated on a straight-line basis over 10 years to a zero estimated salvage value. PR Company's marginal tax rate is 40%. Determine the annual net cash flows generated by the machinery (Show the results using equation or a table). (10 pts)