Nickel Industries is considering the purchase of a new machine that will cost $178,000, plus an additional $12,000 to ship and install. The new machine will have a 5 year useful life and will be depreciated using the straight line method.

The machine is expected to generate new sales of $85,000 per year and is expected to increase operating costs by $ 10,000 annually. Nickel s income tax rate is 40%. What is the projected incremental cash flow of the machine or year 1? $54,800 $60,200 $66,350 $68,200