Blink Corporation is considering to invest in a new production line to manufacture copying machines, these machines are expected to make annual revenues of $15,000,000 for 5 years, and considering annual operating costs of $10,000,000 To manufacture these copying machines Blink Corporation will need to buy a computerized production machine, and that will require the following costs: $9,000,000 the purchase value of the machine $500,000 shipping and installation costs The production machine has a salvage value of $3,000,000 and will have an expected life of 5 years Using a straight line method depreciation the depreciation expense is $1,200,000 per year. In addition the firm is expects it will have to invest an additional $400,000 in working capital to support the new investment. The company is exempted from paying taxes. According to previous information you are required to answer the following: a) What kind of investment is this (expansion or replacement)? b) Calculate the initial cash outflow c) Calculate the relevant incremental cash flows for the expected life of the machine (5years)