A 2-year project is under consideration. Here's what's known about its cash flows: $3,000,000 would need to be spent immediately to buy production equipment The production equipment will be depreciating according to the 3-year MACRS class At the end of the project, the production equipment is estimated to sell for half of its original price $400,000 would need to be spent immediately on net working capital investment . . $1,000,000 would be generated each year in annual operating cash flows The company faces a 40% corporate income tax rate The rate of return for projects similar to this one is 10%. Use the values in the MACRS table below for any relevant calculations. Click to enlarge to full page, if needed. Property Class Year Three-Year Five-Year Seven-Year 1 20.00% 14.29% 33.33% 44.44 32.00 24.49 14.82 19.20 17.49 7.41 11.52 12.49 11.52 8.93 5.76 8.93 8.93 4.45 Based on the information above: (a) The sale of the production equipment at the end of the 2nd year will generate an After-Tax Salvage Value in the amount of [Select] (b) When the project ends at the end of the 2nd year, the change in Net Working Capital for that final year will equal [Select] , and that will be [Select] for the company. 067