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Using the data from this problem and problem 1 determine incremental cash flows for year 1, years 2-6 (they will not change for years
Using the data from this problem and problem 1 determine incremental cash flows for year 1, years 2-6 (they will not change for years 2- 6) and then for years 7-9 (cash flows will remain constant those 3 years) if the new incinerator is purchased. (Note that the reason cash flows are different in year 1 from years 2-6 is due to the increase in A/R in year 1 which does not recur. The reason cash flows are different in years 7-9 from 2-6 is due to the fact that the old machine would be fully depreciated after year 6. Finally, the reason the cash flows are different in year 10 from years 7-9 is due to the sale of the new machine at the end of year 10.)
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