An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes. The asset has an acquisition cost of 5.7 million dollars and will be sold for 1.8 million dollars at the end of the project. If the tax rate is 21 percent, what is the aftertax salvage value of the asset?

In the previous problem, suppose the fixed asset actually qualifies for 100 percent bonus depreciation in the first year. All the other facts are the same. What is the project's Year I net cash flow now? Year 2? Year 3? What is the new NPV?