Periodic cash inflows Scenic Tours, Inc., is a provider of bus tours throughout New England. The corporation is considering the replacement of 14 of its older buses. The existing buses were purchased 4 years ago at a total cost of $2,749,000 and are being depreciated using MACRS and a 5-year recovery period (see table ). The new buses would have larger passenger capacity and better fuel efficiency as well as lower maintenance costs. The the 14 new buses is $2,963. Like the older buses, the new ones would be depreciated using MACRS and a 5-year recovery period. Scenic is subject to a tax rate of 21%. The following table calculate incremental (net) periodic cash flows for the proposed bus replacement. Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Year 1 Net Incremental Cash Flows Cash flows: (000) Revenues Less: Change in expenses Less: Taxes @ 21\% Depreciation tax savings Net operating cash inflows \begin{tabular}{l} $ \\ $ \\ $ \\ $ \\ $ \\ $ \\ $ \\ \hline \end{tabular}