Answer:
The incremental annual net cash inflows provided by the new machine would be $2,525.
Explanation:
In order to calculate the incremental annual net cash inflows provided by the new machine we would have to use the following formula:
incremental annual net cash inflows=saving in annual operating cost+contribution earned on additional sales
                            =( $4,125-$3,730)+(21,300×$0.10)
                            =$395+$2,130
                            =$2,525
Hence, The incremental annual net cash inflows provided by the new machine would be $2,525.