A company is considering a year project that requires payng 55.000.000 for a cutting edge production equipment. This equipment fals into the 5-year MACRS class and will have a market value of quarter its original purchase price after 3 years. The project requires an initial investment in net working capital of $350,000. The project is estimated to generate 51,200,000 in annual operating cash flows. The company faces a 40 tax rate. The required rate of return on projects like this one is 10 percent. Year 1 Property Class Three Year Five Year 10.33 20.00 44.44 32.00 14.89 19.20 7.41 11.52 11.52 5.70 - Boven-Year 14.99 24.40 17.40 12.40 8.03 8.3 8.93 4.45 Based on this information, answer the following questions. Increase decimal places for any intermediate calculations, from the default to or w Only round your finatasuwer to two decimal places for example 10.00023) The Aner. Tax Savage value of the production equipment at the end of the year qualse 11,400,000 2 12.076.000 23 51,944.800 451,710,000 $1,300 : The change in Net Working Capital at the end of the 3rd year quals 21 $1,050,000 22 $700.000 $ $350.000 24 $0 05-5350.000 7 8 8.93 4.45 Based on this information, answer the following questions. Increase decimal places for any intermediate calculations, example, 10,000.23.) (a) The After-Tax Salvage Value of the production equipment at the end of the 3rd year equals #1 $2,460,000 #2 $2,076,000 #3 $1,944,600 #4 $1,710,000 #5 $1,326,000 #1 #2 #3 #4 #5 (b) The change in Net Working Capital at the end of the 3rd year equals # #1 $1,050,000 #2 $700,000 #3 $350,000 #4 $0 #5 -$350,000