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 $2. The existing machine is considered a 3-year class for MACRS. The existing machine can be sold today for $30 and for $20 in 3 years. The new machine has a purchase price of $90 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 $8 a year. The company's marginal tax rate is 20% 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 Recoverv Class