NOTE: In each problem, show the complete cash- flow diagram 1. During a particular year, a corporation has $18.6 million in revenue, $2.4 million of operating expenses, and depreciation expenses of $6.4 million. What is the approximate federal tax this corporation will have to pay for this tax year? 2. A $125,000 tractor-trailer is being depreciated by the SL method over five years to a final BV of zero. Half-year convention does not apply to this asset. After three years, the rig is sold for (a) $70,000 or (b) $20,000. If the effective income tax rate is 40%, what is the net cash inflow from the sale for situation (a) and situation (b)? 3. Certain new machinery, when placed in service, is estimated to cost $180,000. It is expected to reduce net annual operating expenses by $36,000 per year for 10 years and to have a $30,000 MV at the end of the 10th year. Assume that the firm is in the federal taxable income bracket of $335,000 to $10,000,000 and that the state income tax rate is 6%. State income taxes are deductible from federal taxable income. Suppose the machinery had been classified in the 10-year MACRS (GDS) property class. Calculate the new after-tax PW and after-tax IRR