Spear Company is considering a $5,420,000 asset investment that has a four-year service life and a $420,000 salvage value. The investment is expected to produce annual savings in cash operating costs of $880,000 and will require a $270,000 overhaul in year 3. This amount will be recorded as repair and maintenance expense and is fully deductible for tax purposes. Spear uses the net-present-value method to analyze investments. Asset investments are depreciated by the straight-line method, ignoring salvage values in related computations. Required: A. Ignoring income taxes, determine the (pre-discounted) cash-flow amounts that would be used in a net-present-value analysis for below. (Negative amounts should be indicated by a minus sign.) 1. Asset acquisition 2. Annual savings in cash operating costs 3. Annual straight-line depreciation 4. Year 3 overhaul 5. Year 4 asset disposal B. Repeat requirement "A," assuming the company is subject to a 30% income tax rate. Assume the company depreciates the asset using the optional straight-line method. Additionally, it depreciates it over the asset's service life (not its MACRS life). (Negative amounts should be indicated by a minus sign.) 1. 2. 3. Asset acquisition Annual savings in cash operating costs Depreciation should be Year 1 Year 2 Year 3 Year 4 Year 5 Year 3 overhaul Year 4 asset disposal 5