Biophore Corporation, an Indian pharmaceutical company, is considering replacing a labeling machine in one of its factories.

The replacement will reduce operating expenses (i.e., increase earnings before interest, taxes, depreciation, and amortization) by ₹2,000,000 per year (₹ stands for Indian Rupee) for each of the five years the new machine is expected to last.

Although the old machine has zero book value, it can be used for 3 more years. The depreciable value of the new machine is ₹5,000,000. The company estimates that the machine will lose 40% of its net book value each year, with a scrap value of ₹1,000,000. The company will use the reducing balance depreciation, and is subject to a 30% tax rate. Estimate the operating cash flows generated by the replacement.