Incremental operating cash flows Richard and Linda Thomson operate a local lawn maintenance service for commercial and residential property. They have been using a John Deere riding mower for the past several years and believe that it is time to buy a new one. They would like to know the incremental (relevant) cash flows associated with the replacement of the old riding mower. The following data are available. 1. There are 5 remaining 2. The old mower has a zero book value 3. The new mower is expected to last 5 years. 4. The Thomsons will follow a 5-year MACRS recovery period for the new mower years of remaining useful life on the old mower 5. Depreciable value of the new lawn mower is $1.730 6. They are subject to a 40% tax rate. 7. The new mower is expected to be more fuel-efficient, maneuverable, and will require less maintenance than the previous models which should result in reduced operating expenses of S504 per year 8. The Thomsons will buy a maintenance contract that calls for annual payments of $116 for the expected life of the mower Create an incrementai operating cash Now statement for the replacement of Richard and Linda's John Deereriding mower. Show the incremental cperating cash flow for the next 6 years. Year Savings from new and improved mower$ Less: Annual maintenance cost Less: Depreciation Savings (loss) before taxes Taxes (40%) Savings (loss) after taxes Incremental operating cash flow