Question: Arkansas Implements Inc. is analyzing a replacement project which is expected to reduce expenses after the equipment is replaced from $75,000 with the old equipment to $61,000 with the new equipment. There is no effect on revenue expected. Also, the depreciation of the old equipment is currently $10,000 per year, while the depreciation of the new equipment is expected to change to $25,000 per year. If the company's marginal tax rate is 34%, what is the expected change in the operating cash flows for year 1 if the company undertakes this project?