Question 1 0.5 pts 1. Miller Corp. is considering a new three-year expansion project that requires an initial fixed asset investment of $900,000. The fixed asset will be depreciated by the straight-line method over its three-year useful life. And, the salvage value is zero. Assume the tax rate is 35%. What is the depreciation tax shield per year? Question 5 0.5 pts Following #4, how will the sale of the old equipment affect the free cash flow (FCF) in the 3rd year? Please choose the correct one out of the following two statements. The after-tax salvage value (the answer to #4) should be included in the 3rd year's FCF. The sale price ($50,000) should be included in the 3rd year's FCF. Question 4 0.5 pts Following #1, we'll assume the straight-line depreciation is used; but, now we'll assume the salvage value is $30,000. The company could sell the old equipment for $50,000 at the end of the project. Assume the tax rate is 35%. What is the after-tax salvage value of selling the old equipment? $50,000 $43,000 $32,500 $30,000 Question 3 0.5 pts Following #1, we'll assume the straight-line depreciation is used. And, the salvage value is zero. The project is estimated to generate $500,000 in annual sales, with costs of $150,000. If the tax rate is 35%, what is the operating cash flow (OCF) per year for this project? $32,500 $50,000 $332,500 $17,500