Cameron Industries is purchasing a new chemical vapor depositor in order to make silicon chips. It will cost $6,000,000 to buy the machine and $20,000 to have it delivered and installed. Building a clean room in the plant for the machine will cost an additional $3 million. The machine is expected to raise gross profits by $3,500,000 per year, starting at the end of the first year, with associated costs of $1 million for each of those years. The machine is expected to have a working life of five years and will be depreciated over those five years. The marginal tax rate is 40%. What are the incremental free cash flows associated with the new machine in year 2? OA. $1,204,000 OB. $1,981,600 OC. $1,196,000 O D. $1,296,000 ...

Cameron Industries is purchashg a new chemical vaper depositor in order to make alicon chips. It will cost 56,000,000 to buy the machine and $20,000 to have it delivered and instaled: Building a cla 3 . room in the plant for the machine wit cost an edditional $3 million. The machine is expected to raise gross profits by $3,500,000 per year, starting at the end of the first year, with associatod costs of $5 malior for each of those years. The machine is expected to hove a working ife of five years and wa be deprociated over those five yearh. The marghal tax rate is 40%. What ace the incrementai tree cash flowt associnted with the new machine in year 2 ? A. $1,204,000 B. 51,981,600 c. 51,196,000 D. 51,296,000