Q2 and 4

2. Your company just bought some new equipment for its manufacturing plant. The equipment cost $1,000,000. Industrial equipment like this has a MACRS classification of seven years. If the equipment will be sold in four years for $224,900, what is the after-tax cash flow from the asset sale, assuming a tax rate of 34%?y 3. To calculate the change in net working capital, which of the following would be considered a cash outflow? a. An increase in long-term debt b. A decrease in sales c. A decrease in short-term debt d. An increase in accounts payable e. A decrease in accounts payable You need to borrow $3,000 quickly, and the local pawn shop will give it to you if you promise to repay them $300 each month for the next year. Suppose that the pawn shop's cost of funds is 18%, compounded monthly. From their viewpoint, what is the NPV of this deal? 4