Alpha Beta Company, Inc., a manufacturer of toys, is considering replacing an existing piece of equipment with a more sophisticated machine. The firm pays $40$ percent taxes on ordinary income and capital gains. Given the following information, calculate the incremental annual earnings before depreciation and taxes. Existing MachineCost $=$ $$50,000$Purchased $2$ years agoDepreciation using straight$-$line method $(20\%$ depreciation each year$)$Useful life $=5$ yearsCurrent market value $=$ $$30,000$Annual cash flows $=17221$ Proposed MachineCost $=$ $$80,000$Installation $=$ $$10,000$Depreciation using straight$-$line method $(20\%$ depreciation each year$)$Useful life $=5$ yearsAnnual cash flows $=33820$