Question 24 2.75 pts Barrington Oil is considering replacing a drilling rig with a newer model. The current rig can be sold today for $1.2 million. It cost $3.4 million when new and is 90% depreciated today. The new rig will cost $4.6 million but it will cost $50,000 to ship it to the site and another $250,000 to get it installed. There is no effect on working capital. They are in the 40% tax bracket. What is the cost of the proposed replacement, in millions? Question 27 2.75 pts If a firm were allowed to depreciate its assets over a shorter time frame than they are currently allowed to use, which of the following statements would be true? They will pay less taxes in the first few years. They will have higher net fixed assets in the first few years, They will have lower net cash flow in the first few years. O a and c