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 he works $40$ hours each week, the company's EBIT will be $$555,000$ per year, and if he works a $50-$hour week, the company's EBIT will be $$635,000$ per year. The company is currently worth $$3\mathrm{.}25$ million. The company needs a cash infusion of $$1\mathrm{.}35$ million, and it can issue equity or issue debt with an interest rate of $7$ percent. Assume there are no corporate 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 dollar, e$.$g$.,1,234,567.)$

b$.$ Under which form of financing is Tom likely to work harder?