Flatiron Construction, who is building the I-35W Bridge, needs a new super long extension crane to reach out over the Mississippi River for the bridge floor work. We have some economic decisions to make on this equipment. The cost is $3,500,000 and we do not expect to keep this crane for its estimated lifetime. Perform an economic analysis. Question 1. Under plan A, Flatiron would depreciate the crane as "Special Handling Equipment" under MACRS GDS which has a class life of n=3, and then sell it for $1,000,000 at the end of year 2. Compare the Net Book Value versus the Salvage Value (Selling Price) at the end of year 2 and specify whether the difference in value is a capital loss or depreciation recapture (capital gain), and specify by how much in $. Question 2 Under plan B, Flatiron would depreciate the crane as a "Construction Asset" under MACR GDS which has a class life of n=5 years, and then sell it for $400,000 at the end of year 4, because it is almost obsolete and used up at that point. Compare the Net Book Value versus the Salvage Value (Selling Price) at the end of year 4 and specify whether the difference in value is a capital loss or depreciation recapture (capital gain), and specify by how much in $.