Operating cash inflows A firm is considering renewing its equiprwent to meet increased demand for its product. The cost of equipment modfcators is 51.87 millon plus 5113.000 in instal. costs. The firm wil depreciate the equipment modifications under MrCRS, ising a 5 -year recovery period (see table I Additional sales reverue from the renewal should amount to 51.16 per yeat, and addisonal operating expenses and other conts (exctuding dopreciation and interest) wifl amount to 39% of tho additional sales. The frm is subject to a tax rate of 40%. (Note: An the following cuestions for each of the next 6 years.) a. What incremental earrings befoce deprociation, interest, and taxos will result trom the renewal? b. What incremental net operating profits after taxes will result fram the renewar? c. What incremental operating cash intlows will result from the renewal? a. The incremental profts belore depreciation and tax are I (Ftound to the nearest dollar) (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes "These percentages have been rounded to the nearest whole percent to simplify calculations while 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