5 years 10 years 3 years 33% 45 15 7 MACRS RATE Recovery year 1 2 3 4 5 6 7 8 9 10 11 7 years 14% 25 18 12 20% 32 19 12 12 5 10% 18 14 12 9 8 9 9 4 6 6 6 4 A machine currently in use was originally purchased 2 years ago for $40,000. The machine is being depreciated under MACRS using a 5-year recovery period. The current machine can be sold at $42,000. A new machine, using a 3-year MACRS recovery period, can be purchased at a price of $140,000 and requires $10,000 to install . If the new machine is acquired, the firm expects a $35,000 increase in current assets and a $15,000 increase in current liabilities. Earnings before depreciation, interest, and taxes are expected to be $70,000 for each of the next 3 years with the old machine, and to be $120,000 in the first and S130,000 in the second and third year with the new machine. At the end of 3 years, the market price of the old machine will equal zero, but the new machine could be sold to net $35,000 before taxes. The firm is subject to a 40% tax rate. Calculate the incremental) operating cash inflows for yearl. $43.920 $46,760 MacBook Pro