A manufacturer of recyclable paper and paper board is considering the replacement and upgrading of machinery that would improve efficiency. The new machinery costs $2.5 million and is expected to last for 5 years with no salvage value. Straight line depreciation will be used. Cash inflows, currently at $5 million per year, are expected to increase to $5,750,000 annually if the machinery is purchased. The tax rate is 34%. a. Assuming that the machinery can begin to increase cash inflows in 1 year, and company expenses are consistently 60% of cash inflows, what is the after-tax cash flow in each of the next 5 years? b. The firm reasons that it does not matter which depreciation method is used because the total amount of depreciation is the same under each method. Evaluate this understanding of depreciation