using a $5-$year rocovery period $($see table $1).$ Additional sales revenue from the renewal should amount to $$1\mathrm{.}27$ million per year, and

subject to a tax rate of $40\%.($Note: Arswer the following questions for each of the next $6$ years.$)$

What incremental eamings before depreciation, interest, and taxes wil result from fhe renewal?

b$.$ What incremental net operating profits afier taxes will result from the renewal?

c$.$ What incremental net operating profits afier taxes will result from the c$.$

The incremental profis before deproolation and tax are $ $($Round to the nearest dollar.$)$

b$.$ Calculate the incremental net operaing profits afier tawes below. $($Round to the nearest dollar.$)$

$($Round to the nearest dollar.$)$

$($Round to the nearest dollar$)$

$($Round to the nearest dollar$)$

$($Round to the nearest dollar$),$

$($Round to the nearest dollar$)$

c$.$ For year $1,$ the incremental operafing cash flow wil be s

For year $2,$ the incremental operating cash flow will be

For year $3,$ the incremental operating cash flow will be

$($Found to the nearest dallar.$)$

$($Round to the nearest dollar.$)$

$($Round to the nearest dollar.$)$

$($Round to the nearest dollar.

For year $4,$ the incremental operating cash flow will be

For year $5,$ the incremental operating cash flow will be :$?$

$($Round to the nearest dollar.$)$

For year $6,$ the incremental operating cash flow will be

Rounded Depreciation Percemtages by Recowery Year Using MACRS for

First Four Property Classes

"These percentages have been rounded to the nearest whole percent to simplify calculations while

retaining realiam. To calculate the actual depreciasion for tax purposes, be sure to apply the actual

unrounded percentages or directly apply double$-$dedining balance $(200\%)$ depreciation using the hall$-$year

corvertion.