Ivanhoe, Inc., is considering opening up a new convenience store in downtown New York City. The expected annual revenue at the new store is $760,000. To estimate the increase in working capital, analysts estimate the ratio of cash and cash equivalents to revenue to be 0.03 and the ratios of receivables, inventories, and payables to revenue to be 0.05, 0.10, and 0.04, respectively, in the same industry. What is the expected incremental cash flow related to working capital when the store is opened? Incremental cash flow tA $ Blossom Potions, Inc., a pharmaceutical company, bought a machine at a cost of $2 million five years ago that produces pain-reliever medicine. The machine has been depreciated over the past five years, and the current book value is $700,000. The company decides to sell the machine now at its market price of $1 million. The marginal tax rate is 25 percent. What are the relevant cash flows? Relevant cash flow $ 916000 How do they change if the market price of the machine is $600,000 instead? Relevant cash flow $ tA 628000