A firm is evaluating a new machine to replace an existing, older machine. The old (existing) machine is being depreciated at $20,000 per year, whereas the new machine's depreciation will be $18,000. The firm's corporate tax rate is 20 percent. Everything else equal if the new machine is purchased, what effect will the change in depreciation have on the firm's incremental operating cash flows? a) b) There should be no effect on the firm's cash flows because depreciation is a non-cash expense. Operating cash flows will decrease by $2,000 Operating cash flows will increase by $1,400. Operating cash flows will decrease by $600 Operating cash flows will decrease by $400 Bo brak