1a. ALASKA Pipeline plans to invest in a new and advanced computerized inventory management system. The new automatic system will replace the existing one, which has a book value of $56,000. Once the new system is in place, the old one is no longer needed and can be sold for $74,000. The cost of the new system is $1,000,000, and installation will cost another $75,000. The system will require some special type of tools to operate worth $15,000. It is a one-time requirement. ALASKA's tax rate is 35 percent. What is the net investment for this project? (25 points) Note: You have to show all your work, including the formula, to get full credit. A simple answer will not get any credit at all. 1b. Consider the question in la again. The new system will last for five years, and it will be depreciated straight-line to zero over its useful life. ALASKA is expected to generate a revenue of $6 million every year. The variables cost is 40 percent of the revenue, and fixed is $425,000 per year. What is the net cash flow (NCF) for years 1-5? (25 points)