Cameron Industries is purchasing a new chemical vapor depositor in order to make silicon chips. It will cost

$5,000,000 to buy the machine and

$10,000 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

six years and will be depreciated over those

six years. The marginal tax rate is 40%. What are the incremental free cash flows associated with the new machine in year 1?

A.

$5,010,000

B.

$4,509,000

C.

$835,000

D.

-5,000,000