Sigma is planning an investment of 8,000,000 today. The investment is depreciated on a straight-line basis over the life of 5 years and the residual value at the end of the project is assumed to be 1,500,000. The investment will generate the following income over the next five years 5,000,000, 6,000,000, 7,000,000, 6,000,000 and 5,000,000. Operating costs excluding depreciation will amount to 70% of the income in the individual year. The working capital requirement over the lifetime is assumed to be 10% of the following year's turnover. The project will be part-financed with a serial loan of 6,000,000 at an interest rate of 2% pa. The project's tax rate is 22%. a) What will be the cash flow to equity (after tax) in year 3? b) What will be the cash flow to the total capital (after tax) in year 4?