Please solve

Big-Pear Corp. is considering replacing its existing equipment that is used to produce smart cell phones. This existing equipment was purchase 3 years ago at a base price of $50,000. Installation costs at the time for the machine were $7,000. The existing equipment is considered a 5 -year tlass for MACRS. The existing equipment can be sold today for $50,000 and for $20,000 in 3 years. The new equipment has a purchase price of $110,000 and is also considered a 5-year class for MACRS. Installation costs for the new equipment are $7,000. The estimated salvage value of the new equipment is $90,000. This new equipment is more efficient than the existing one and thus savings before taxes using the new equipment are $17,000 a year. Due to these savings, inventories will see a one time reduction of $4,000 at the time of replacement. The company's marginal tax rate is 40% and the cost of capital is 12%. For this project, what is the incremental cash flow in year 1 ? capital is 12%. For this project, what is the incremental cash flow in year 1 ? MACRS Fixed Annual Expense Percentages by Recovery Class For your answer, round to the nearest dollar, do not enter the $ sign, use commas to separate thousands, use a negative sign in front of first number is the cash flow is negative (do not use parenthesis to indicate negative cash flows). For example, if your answer is $3,005.87 then enter 3,006 ; if your answer is $1,200.25 then enter 1,200 For this project, the incremental cash flow in year 1 is