Tom Scott is the owner, president, and primary salesperson for Scott Manufacturing Because of this, the company's profits are driven by the amount of work Tom does. If h works 40 hours each week, the company's EBIT will be $435,000 per year; if he works 50-hour week, the company's EBIT will be $530,000 per year. The company is current worth $2.7 million. The company needs a cash infusion of $1.2 million and can issu equity or issue debt with an interest rate of 8 percent. Assume there are no corporat taxes. a. What are the cash flows to Tom under each scenario? (Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.) b. Under which form of financing is Tom likely to work harder? Answer is not complete. a. 219,000 314,000 IS Debt issue and 40-hour week Debt issue and 50-hour week Equity issue and 40-hour week Equity issue and 50-hour week Which form of financing is Tom likely to work harder? b. Equity issue