2. [10 Points) You have been hired as a consultant for Urban-Tech Zither, Inc., manufacturers of fine zithers. The market for Zither is growing quickly. The company bought some land three years ago for $2.4 million in anticipating of using it as a toxic waste dump site but has recently hired another company to handle all toxic materials. Based on a recent appraisal, the company believes it could sell the land for $2.5 million before taxes. The company is considering building new plants to produce fine zithers on the land. The company also hired a marketing firm to analyze the Zither market. The marketing firm predicts that the company will be able to sell 5,500 units of zither each year for next three years, respectively. The price of $670 can be charged for each zither. At the end of three-year period, sales should be discontinued. The company believes that fixed costs for the project will be $445,000 per year, and variable costs are 12% of sales. The equipment necessary for production will cost $3 million and will be fully depreciated based on the double-declining-balance depreciation approach over three years. At the end of the project, the equipment can be scrapped for $475,000. The company has a 21% tax rate. a. What is operating cash flows each year? b. What is initial cash outflow at time 0? c. What is the after-tax salvage value of equipment