2) (4 pts) A proposed new investment requires an upfront investment of $400,000 and will be straight line depreciated to zero over an 8 year economic life. The project has projected sales of $500,000 per year, variable costs are expected to be 35% of sales, and fixed costs are $75,000 per year. what is the project's Net Income for the first year assuming a tax rate of 22%, what is the Operating Cash Flow for the first year? Project Net Income- OCF (4 pts) Consider an asset used in a project that costs $300,000 and will be straight-line depreciated to zero over 5 years. The assumed salvage value after 5 years is SO. 3) a. What is the book value of the asset after three years? Book Value $ What would the After-Tax Salvage Value of the asset be if the asset is sold for $80,000 at the end of year 3, assuming the appropriate tax rate is 24%? b. After-Tax Salvage Value-$