A firm had contemplated buying a new machine for $3 million and the cost of which would be depreciated over 10 years. You will be able to depreciate 10% of the machine this year. If the firm has a tax rate of 25%, what would have been the impact of such a purchase on the cash flow of the firm? It would have $2,925,000 less cash It would have an additional $7,500,000 in cash It would have $1,500,000 less cash It would have $3,000,000 less cash