In Capsim, investment in plant & equipment (including automation) is depreciated on a straight line basis over 15 years. Imagine the firm you inherited has 1st shift capacity of 2,000,000 units at an automation level of 5. The original cost of this capacity was $52 million. Because the machines are 8 years old, 8/15 of the value has been depreciated. Because you only currently sell 1,200,000 units per year, you decide to sell 800,000 units. Selling capacity recoups 65% of the original purchase price. What will be the gain/loss for this transaction on the income statement? $9,706,666.67 $3,813,333.33 -$2,426,666.67 $11,093,333.33 Imagine a similar scenario as the question above. Your firm sells excess equipment on for $10 million. The undepreciated value of that equipment on the balance sheet was $5 million. How would this transaction affect the cash flow statement (e.g., how much cash would this transaction bring into or cost the firm)? add $5 million in cash add $15 million in cash subtract $5 million in cash O add $10 million in cash