For the following problem I need help finding

a. The incremental profits before depreciation and tax?

b. calculate the incremental net operating profits after taxes including the: profit before depreciation and taxes, depreciation, profit before taxes, taxes, and net profit after taxes for years 1-6.

c. what is the incremental operating cashflow for years 1-6?

Operating cash inflows A firm is considering renewing its equipment to meet increased demand for its product. The cost of equipment modifications is $1.85 million plus $109,000 in installation costs. The firm will depreciate the equipment modifications under MACRS, using a 5-year recovery period (see table Additional sales revenue from the renewal should amount to S1 22 million per year, and additional operating expenses and other costs (excluding depteciation and interest) will amount to 37% of the additional sales. The firm is subject to a tax rate of 40% (Note: Answer the following questions for each of the next 6 years) a. What incremental earnings before depreciation, interest, and taxes will result from the renewal? b. What incremental net operating profits after taxes will result from the renewal? c. What incremental operating cash inflows will result from the renewal? a, Data Table a 7 years (Click on the icon located on the top-right comer of the data table below in order to copy its contents into a spreadsheet) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year Recovery year 3 years 5 years 10 years 1 33% 2096 149 10% 2 45% 32% 25% 18% 3 15% 19% 18% 1496 4 7% 1296 12% 1296 5 12% 9% 99 6 5% 9% 896 7 9% 796 8 49 6% 9 6% 10 6% 11 4% Totals 100% 100% 100% 100% "These percentages have been rounded to the nearest whole percent to simplity calculations while retaining realism To calculate the actual depreciation for tax purposes, be sure to apply the actual unrounded percentages or directly apply double declining balance (200%) depreciation using the half year convention Entd 12