What is the incremental annual cash flow associated with the new machine project for Heritage Corporation?

To determine the incremental annual cash flow associated with the new machine project for Heritage Corporation, one must calculate the additional cash inflows generated by the project compared to the existing situation. This calculation usually involves considering various factors including increased revenues, any potential cost savings, and subtracting any costs directly associated with the project.

The correct answer indicates that the incremental annual cash flow amounts to $12,600. This figure likely includes new revenue that the machine can generate or cost savings from more efficient operations, minus any additional expenses incurred from operating the new machine.

For companies considering new equipment, it's essential to evaluate how the investment will affect cash flows over the project's lifespan. This analysis enables businesses to make informed decisions on whether to proceed with new capital expenditures and helps assess the project's overall profitability.

In summary, the $12,600 figure effectively signifies the net benefits that the new machine brings in terms of cash flows, making it a pivotal financial metric for Heritage Corporation when evaluating the project's viability.