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As the result of purchasing new equipment costing $ 7 3 0 , 0 0 0 , ABC Inc. expects the number of units it

As the result of purchasing new equipment costing $730,000, ABC Inc. expects the number of units it produces and sales will increase next year by 14%. This past year the firm sold 75 units at a price of $13,000 per unit and the cost to manufacture each unit was $2,400. ABC is in a 25% tax bracket. Assuming there are no other expenses, what is the expected incremental cash flow from operations next year? We ignore the impact of CCA and depreciation.
a.$679,725
b.$906,300
c.$83,475
d.$111,300
e.$64,212

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