Incremental Cash Flows Year 1 Year 2 Year 3 Year 4. a)net A in oper.revenue $40,000$40,000 $40,000 $40,000. b)+/-net A in tax deprec. -23,331-31115 -1036 7-5,187. C) =net△in income bf tax $16669$8,885$29,633$34813. d)+/-net△in taxes -6,668 -3,554 -11,853 -13,925. e)+/-net A in inc.after tax $10,001$5,331$17780$20,888. f)+/net A in tax deprec.charges 23,331 31,115 10367 5,187. g)Incremental net cashflow $33,332 $36,446 $28,147 $26,075. where△=change. slide 9slide 9 Incremental Cash Flows Incremental Cash Flows Year 1 Year 2 Year 3 Year 4. a) net Δ in oper. revenue $40,000 $40,000 $40,000 $40,000. b) +/- net Δ in tax deprec. -23,331 -31,115 -10,367 -5,187. c) = net Δ in income bf tax $16,669 $ 8,885 $29,633 $34,813. d) +/- net Δ in taxes -6,668 -3,554 -11,853 -13,925. e) +/- net Δ in inc. after tax $10,001 $ 5,331 $17,780 $20,888. f) +/- net Δ in tax deprec. charges 23,331 31,115 10,367 5,187. g) Incremental net cashflow $33,332 $36,446 $28,147 $26,075. $33,332 $36,446 $28,147 $26,075. where Δ = change