Last month, a company specializing in wind power plant design and construction made a capital investment of $400,000 in physical simulation equipment that will be used for at least 5 years, after which it is expected to be sold for approximately 25% of its first cost. According to tax law, the simulation is MACRS-depreciated using a 3-year recovery period. a. Explain why there is predictable tax implication when the simulator is sold. b. Determine by how much the sale will cause TI and taxes to change in year 5 if T_e = 35%