Outlook 2:06 PM more @ 60% 47. The relevant cash flows in capital budgeting can best be described as: a incremental after-tax net income b. incremental cash flows c. externality cash flows d. changes in fixed asset cash flows 48. The change in net working capital is measured by the change in: a. current assets minus current liabilities b. total assets minus total liabilities c. total assets minus (total liabilities plus total equity) d. (current assets plus fixed assets) minus current liabilities 49. Calculate the incremental operating cash flow for year two for a new proposed project given the following information: Machine cost: $90,000 Installation and delivery $10,000 Depreciation expense in year 2 844,500 Tax rate 40% New revenues: $145,000 per year Old revenues: $90,000 per year a. $104,800 b. S 60,300 c. S 50,800 d. $ 6,300 50. Calculate the incremental operating cash flow for year 1 for the following information: Increase in sales: $1,100,000 Increase in depreciation expense: $1,100,000 Reduction in non-depreciation operating expenses: $500,000 Tax rate: 40% a. S1,030,000 b. $1,400,000 c. ($70,000) d. ($30,000)