A project is expected to result in an $4 million increase in sales and $2 million increase in expenses, per year. What is the annual incremental after-tax cash flow (OCF) associated with the project if the firm's tax rate is 32% and the incremental depreciation is $1 million per year.

A new project will result in the annual incremental production of 5,000 sonar units. Each unit will be sold for $10,000 and costs $8,400 to produce. What is the annual incremental after-tax cash flow (OCF) associated with the project if the firm's tax rate is 30% and the incremental depreciation is $1 million per year.