Operating cash inflows A firm is considering renewing its equipmont to moet increased demand for its product. The cost of equipment modifications is $1.95 million plus $115,000 in installation costs. The firm will depreciate the equipment modfications under MACRS, using a 5-year recovery period (see table ing ). Additional sales revenue from the renewal should amount to $1.15 million per year, and additional operating expenses and other costs (excluding depreciation and interest) will amount to 37% of the additional sales. The firm is subjoct to a tax rate of 40%. (Note. Answer the following questons for each of the next 6 years.) a. What incremental eamings before depreclation, interest, and taxes will result from the renewal? b. What incremental not operating profits atter taxes will result from the renewal? c. What incremental operating cash inflows will result from the renewal? a. The incremental profits belore depreciation and tax ares (Round to the nearest dollar.) (h. b. Calculate the incremental net operating profis after taxes below. (Round to the noarest dollar.) (F (f (F c. For year 1 , the incremental operating cash flow will be $ (Round to the near (Round to the nearest dollar.) c. For year 1 , the incremental operating cash flow will be $ (Round to the neare For year 2, the incremental operating cash flow will be $ (Round to the nearest For year 3, the incremental operating cash flow will be $. (Round to the nearest For year 4, the incremental operating cash flow will be $. (Round to the nearest For year 5 , the incremental operating cash flow will be $ (Round to the nearest For year 6, the incremental operating cash flow will be \$ (Round to the nearest