A company is contemplating the purchase of a new piece of equipment for expansion. This acquisition would alleviate $8,000 per year in rental costs for the current machine. The following information pertains to the new equipment:

Initial cost of proposed new equipment $156,000

Estimated useful life 8 years

Estimated disposal value at end of useful life $20,000

Company estimates the new equipment will cause revenues to increase from the current level of $300,000 to $360,000 per year. Cash operating expenses related to the increase in revenue are expected to be $24,000 per year. Company uses straight-line depreciation. Tax rate is 30%. Calculate the annual incremental operating cash flows.