Hello, I am studying for my Finance mid term and I need help figuring out how my professor got these answers on the study guide. I understand how he got 1 and 2(a) but if you could write out the equation or explain how he got the other answers, I would really appreciate it. Thank you!

1. A 3-year project requires the acquisition of equipment that cost $2 million (including shipping and installation) and a $500,000 structure to be built on a plot of land already owned by the parent company. The plot was purchased some time ago by the company for $60,000 for use in another project that never took off and the plot has been lying idle since then. The current appraised value of the plot is $120,000. If the project takes off, it will require an initial investment of $150,000 in NWC. The project manager has received a guarantee from the parent company that, in three years, it will repurchase the structure (including the plot of land) at $620,000 (with no tax implication since it is an internal transaction). Assume no depreciation expense for the structure. Q1: Calculate the initial investment needed for the project: Ans. $2,770,000 2. The $2 million equipment will be depreciated on a straight-line basis over the next three years. a. Assuming that the equipment has a useful life of five years, calculate the accumulated depreciation by the end of year three. Ans. $1,200,000. b. Calculate the book value of the asset at the end of year three. Ans. $800,000 c. On second thought, the project manager decides to use straight-line depreciation to depreciate the equipment to a book value of $1.1 million by the end of year three. Recalculate the annual depreciation expense. Ans. $300,000 3. The project manager estimates that the salvage value of the equipment will most probably be $1.4 million at the end of year three. Assume 25% tax rate. a. Calculate the ATSV of the equipment using the result of Q2(b) above. Ans: $1,250,000 b. Recalculate the ATSV of the equipment using Q2(c) above. Ans: $1,325,000