Top$-$Ten Inc. is considering replacing its existing machine that is used to produce musical CDs$.$ This existing machine was purchase $3$ years ago at a base price of $$50.$ Installation costs at the time for the machine were $$1.$ The existing machine is considered a $3-$year class for MACRS. The existing machine can be sold today for $$40$ and for $$10$ in $3$ years. The new machine has a purchase price of $$100$ and is also considered a $3-$year class for MACRS. Installation costs for the new machine are $$8.$ The estimated salvage value of the new machine is $$20.$ This new machine is more efficient than the existing one and thus savings before taxes using the new machine are $$7$ a year. The company's marginal tax rate is $30\%$ and the cost of capital is $12\%.$ For this project, what is the incremental cash flow in year $1?$

MACRS Fixed Annual Expense Percentages by Recovery Class

Year $3-$Year $5-$Year $7-$Year $10-$Year $15-$Year

$133\mathrm{.}33\%20\mathrm{.}00\%14\mathrm{.}29\%10\mathrm{.}00\%5\mathrm{.}00\%$

$244\mathrm{.}45\%32\mathrm{.}00\%24\mathrm{.}49\%18\mathrm{.}00\%9\mathrm{.}50\%$

$314\mathrm{.}81\%19\mathrm{.}20\%17\mathrm{.}49\%14\mathrm{.}40\%8\mathrm{.}55\%$

$47\mathrm{.}41\%11\mathrm{.}52\%12\mathrm{.}49\%11\mathrm{.}52\%7\mathrm{.}70\%$

$511\mathrm{.}52\%8\mathrm{.}93\%9\mathrm{.}22\%6\mathrm{.}93\%$

$65\mathrm{.}76\%8\mathrm{.}93\%7\mathrm{.}37\%6\mathrm{.}23\%$

$78\mathrm{.}93\%6\mathrm{.}55\%5\mathrm{.}90\%$

$84\mathrm{.}45\%6\mathrm{.}55\%5\mathrm{.}90\%$

$96\mathrm{.}56\%5\mathrm{.}91\%$

$106\mathrm{.}55\%5\mathrm{.}90\%$

$113\mathrm{.}28\%5\mathrm{.}91\%$

$125\mathrm{.}90\%$

$135\mathrm{.}91\%$

$145\mathrm{.}90\%$

$155\mathrm{.}91\%$

$162\mathrm{.}95\%$

For your answer, round to the nearest $$\mathrm{.}01,$ do not enter the $ sign and use a negative sign in front of first number is the cash flow is negative $($do not use parenthesis to indicate negative cash flows$).$ For example, if your answer is $$34\mathrm{.}32$ then enter $34\mathrm{.}32.$ If your answer is $-$$$12\mathrm{.}25$ then enter $-12\mathrm{.}25$ not $(12\mathrm{.}25).$

For this project, the incremental cash flow in year $1$ is:

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