Hardware 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. The machine is expected to work for six years and raise gross profits by $4,500,000 per year, starting at the end of the first year. Other general expenses associated with using the machine are estimated at $1 million for each of those years. The machine will be depreciated over six years using the straight-line method. The marginal tax rate is 40%. What are the incremental free cash flows associated with the new machine in year 2 of the project? Assume the machine is purchased in year zero and starts depreciating in year 1 of the project.

$2,665,000

$2,434,000

$831,667

$835,000

$2,100,000

$1,599,000