Consider the case of Newcastle Coal Company: Newcastle Coal Company is considering a project that requires an investment in new equipment of $3,780,000. Under the new tax law, the equipment is eligible for 100% bonus depreciation at t = 0 so the equipment will be fully depreciated at the time of purchase. Newcastle estimates that its accounts receivable and inventories need to increase by $720,000 to support the new project, some of which is financed by a $288,000 increase in spontaneous liabilities (accounts payable and accruals). The company's tax rate is 25%. The after-tax cost of Newcastle's new equipment is $720,000 Newcastle's initial net investment outlay is $3,600,000 Suppose Newcastle's new equipment is expected to recover all of its net operating working capital (NOV 000 at the end of its four-year useful life, and at the same time, the firm expects to $2,835,000 t. Remember, that under the new tax law, this equipment was fully depreciated at t