Consider the case of Newcastle Coal Company:

Newcastle Coal Company is considering a project that requires an investment in new equipment of $4,200,000. 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 $800,000 to support the new project, some of which is financed by a $320,000 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___________

Newcastle's initial net investment outlay_________________