Answer: she ought to review her personal records for any possible errors.
Explanation:
$4,800
Explanation: The calculation for the increased annual cash inflow is detailed below:
Savings from the new machine's annual maintenance costs = $15,000 - $6,000 = $9,000
Net maintenance savings = $9,000 × (1 - 0.4) = $5,400
Reduction in depreciation due to acquiring new equipment = ($60,000 ÷ 10) - ($45,000 - 10) = $6,000 - $4,500 = $1,500
Tax implications from decreased depreciation = $1,500 × 0.4 = $600
Net annual cash inflow associated with new machinery = Net maintenance savings - Tax impact = $5,400 - $600 = $4,800. Hence, this process yielded the computed additional annual cash inflow.