P11–18 Operating cash flows: Expense reduction Miller Corporation is considering replacing a machine. The replacement will reduce operating expenses (i.e., increase earnings before interest, taxes, depreciation, and amortization) by $16,000 per year for each of the 5 years the new machine is expected to last. Although the old machine has zero book value, it can be used for 5 more years. The depreciable value of the new machine is $48,000. The firm will depreciate the machine under MACRS, using a 5year recovery period (see Table 4.2 for the applicable depreciation percentages), and is subject to a 21% tax rate. Estimate the operating cash flows generated by the replacement. (Note: Be sure to consider the depreciation in year 6.)
I don't own a financial calculator, I have the Ti84 Plus, please show work. thanks.
Table 4.2
Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes
Percentage by recovery yeara 

Recovery year 
3 years 
5 years 
7 years 
10 years 
1 
33% 
20% 
14% 
10% 
2 
45 
32 
25 
18 
3 
15 
19 
18 
14 
4 
7 
12 
12 
12 
5 
12 
9 
9 

6 
5 
9 
8 

7 
9 
7 

8 
4 
6 

9 
6 

10 
6 

11 
4 

Totals 
100% 
100% 
100% 
100% 
The formula for operating cash flow is :
[(Change in Sales  Change in Cash Operating Expenses)(1Marginal Tax Rate)] + Change in Depreciation * Marginal Tax Rate
Year  Cash Flow Formula  Operating Cash Flow  
1  [(0(16,000))*(121%)] + (9,6000) * 21% 
14,656 

2 

15,866  
3 

14,555  
4 

13,850  
5 

13,850  
6 

504 
The change in operating cash flow is a reduction of 16,000 and so the negative sign has been used.
The depreciation for each year has been calculated using the MACR table rates for each of the 6 years.
Since, the Book Value of the earlier asset is zero, the depreciation is assumed to be zero.
Note: MACRS declining balance changes to straightline method when that method provides an equal or greater deduction.
All figures have been rounded off to two decimal places.
P11–18 Operating cash flows: Expense reduction Miller Corporation is considering replacing a mach...