A corporation is considering purchasing a machine that has an expected eight-year life and will generate for the firm $10,000 per year in net operating income before taxes. The machine will be depreciated using the straight-line method to its anticipated salvage value of $12,000. The firm has a 21% marginal tax rate and the required return for this project is 12%. If the machine costs $50,000, what is incremental cash flow in year 8?

Group of answer choices

20897.5

4147.5

8897.5

5250