please explain the steps

P11-11Incremental operating cash inflows A firm is considering renewing its equipment to meet increased demand for its product. The cost of equipment modifications is $1.9 million plus $100.000 in installation costs. The firm will depreciate the equipment modifications under MACRS, using a 5-year recovery period. (See Table 4.2 on page 112 for the applicable depreciation percentages.) Additional sales revenue from the renewal should amount to $1,200.000 per year, and additional operating expenses and other costs (excluding depreciation and interest will amount to 40% of the additional sales. The firm is subject to a tax rate of 40% (Note: Answer the following questions for each of the next 6 years) a. What incremental earnings before depreciation, Interest, and taxes will result from the renewal? . What incremental net operating profits after taxes will result from the renewal? c. What incremental operating cash flows will result from the renewal? Table 4. Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year Recovery year 3 years 7 years 391 20% 05 . 10 15 19 10 2 12 12 12 > 5 1 T 10 . Tot ROON BOON NOON 1001 These percentages have been founded to the rest whole percent to my can wale retning realism. To calculate me actual depreciation for a better under drectly pohy double declining balance depreciation using the year convention