For this question, start fresh, do not carry over data from earlier questions. You are analyzing the prospects of installing cost saving machinery. You have the following information:
On a yearly basis the machinery generated a savings of $38,000 which led to an increase in taxes of $4,400. The space used by the machinery was lost, leading to loss of rent (post tax) of $8,000.
What will be the net increase in cash flows per year from installing the machinery?