Operating cash inflows A firm is considering fecewing its equipmont to meet increased demand for its product. The cost of equipenent modifications is $1,84 million plus $104,000 in instalat cosis. The firm will depreciate the equipment modifications under MACRS, using a 5 -year recovery period (see table' 1. Additional sales revenus from the renewal should amount to $1.24 trilion per yeac, and additional operating expenses and other costs (orcluding depeodation and interost) wil amount to 41% of the addional sales. The firm ia subject to a tax rate of 40%. (Non. Answer the following puestions for each of the next 6 years.) a. What incremental earnings before pepreciation, interest, and taxes will recult from the renewal? b. What incremental not operating profits after tawes wal resut tram the renewal? c. What incremental operating cash inflows will result from the renewar? a. The incremental protis before deprecisson and tax ase 3 (Round to the noarest dotar.) b. Calculato the intremental net operating protes affer taxes below (Round to the nepareat dollar) (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Rounded Deprciation Percentages by Recovery Year Using MACRS for First Four Pronerty Classes "These percentages have been rounded to the nearest whole percent to smpmy calcuiaturis wimo retaining realism. To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentages or directly apply double-declining balance (200%) depreciation using the half-year convention