Sean Davis is the owner, president, and primary salesperson for Davis Manufacturing. Because of this, the company's profits are driven by the amount of work Sean does. If he works 40 hours each week, the company's EBIT will be $594,000 per year; if he works a 50-hour week, the company's EBIT will be $739,000 per year. The company is currently worth $3.6 million. The company needs a cash infusion of $1.8 million, and it can issue new equity or issue debt with an interest rate of 8%. Assume there are no corporate taxes.

What are the cash flows to Sean if he works a 40-hour week and debt is issued for the cash infusion? (Round answer to 0 decimal places. Do not round intermediate calculations)

What are the cash flows to Sean if he works a 50-hour week and debt is issued for the cash infusion? (Round answer to 0 decimal places. Do not round intermediate calculations)

What are the cash flows to Sean if he works a 40-hour week and equity is issued for the cash infusion? (Round answer to 0 decimal places. Do not round intermediate calculations)

What are the cash flows to Sean if he works a 50-hour week and equity is issued for the cash infusion? (Round answer to 0 decimal places. Do not round intermediate calculations)

*This is an indirect agency cost issue. Note which form of financing provides an incentive for Sean to work harder