Operating cash inflows A firm is considering renewing its equipment to meet increased demand for its product. The cost of equipment modfications is $1.83 million plus $114,000 in instalation costs. The firm will depreciate the equipment modificasons under MACRS, using a 5 .year recovery period (see table 1 . Additional sales revenue from the renewal should amount to $1.17 milton per year, and additional operating expenses and other costs (exduding depreciaton and interest) will amount to 39% of the addifichal sales. The firm is subject to a tar rate of 40%. (Note: Answer the following questions for each of the next 6 years.) a. What incremental earmings before depreciation, interest, and taxes will result from the renewai? b. What incremental nat operating profits afer taxes will result from the renewal? c. What incremental operating cash inflows will result from the renewal? a. The incremental profits before depreciation and tax are 4 (Round to the nearest doliar) Data table Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes -These percentages have been rounded to the nearest whoie percern io smipmy carcuraunis wruv retaininn realism To calculate the actual denreciation for tax nurnoses be sure in anolv the actual