For the cash flows shown, determine the incremental cash flow between machines B and A (a) in year 0, (b) in year 3, and (c) in year 6.
(a) Incremental CF, year 0: -25,000 – (-15,000) = $-10,000
(b) Incremental CF, year 3: -400 - (-1600 – 15,000 + 3000) = $+13,200
(c) Incremental CF, year 6: (-400 + 6000) – (-1600 + 3000) = $+4200
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