Top-Ten Inc. is considering replacing its existing machine that is used to produce musical CDs. This existing machine was purchase 3 years ago at a base price of $50,000. Installation costs at the time for the machine were $2,000. The existing machine is considered a 3-year class for MACRS. The existing machine can be sold today for $30,000 and for $10,000 in 3 years. The new machine has a purchase price of $80,000 and is also considered a 3-year class for MACRS. Installation costs for the new machine are $6,000. The estimated salvage value of the new machine is $30,000. This new machine is more efficient than the existing one and thus savings before taxes using the new machine are $7,000 a year. The company's marginal tax rate is 20% and the cost of 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