BKM Industries spent $

$10$

$,$

$000$

$$on a feasibility study to expand its production capacity. The company decided to go ahead with the expansion: It will need to buy a new machine for $

$52$

$,$

$000$

$$and spend $

$8$

$,$

$000$

$$on installing it

$.$

$$The machine will be depreciated linearly to zero over a

$5$

$-$

year period and it will have no salvage value.

The machine will create $

$84$

$,$

$000$

$$in incremental revenues per year and $

$58$

$,$

$800$

$$in incremental costs per year. The company's marginal tax rate is

$34$

$\%$

$.$

What is the incremental incremental cash flow associated with the expansion in year

$0$

$($

initial investment

$)$

$?$

What is the incremental incremental cash flow associated with the expansion in year

$1$

$?$