A. XYZ Corp. is considering introducing a new 90" flat screen television/monitor for the consumer market. The company will have to purchase a new machine to produce the screens. The machine's invoice price would be $3,000,000 and was fully depreciated at the time of purchase. Last year, a market research study for the new product cost $1 million. The company's interest expense each year will be $350,000. Because the new product line is similar to another of XYZ's existing products, the new screens are expected to reduce the sales of the company's current large screen TV's by S650,000 per year. The screen is expected to generate sales revenue of $6,000,000 per year. Each year the operating costs (not including depreciation) are expected to be 2,540,000. The company's tax rate is 25%. What is the annual expected incremental operating cash now? 52,378,000 52,332,500 S1,845,000 $2,595,000 $2,107,500