A company is considering a 2-year project that requires paying $5,000,000 for a cutting-edge production equipment. This equipment falls into the year MACRS class and will have a market value of quarter its original purchase price after 2 years. The project requires an initial investment in ne working capital of $350,000. The project is estimated to generate $1,200,000 in annual operating cash flows. The company faces a 40% tax rate. required rate of return on projects like this one is 10 percent. Year -NONO Property Class Three-Year Five-Year 33.33% 20.00% 32.00 14.82 19.20 7.41 11.52 11.52 5.70 Seven-Year 14.20 24.40 17.40 12.40 8.03 8.03 8.00 4.45 Based on this information, answer the following questions, Increase decimal places for any intermediate calculations, from the default 2 to 6 on higher. Only round your final answer to TWO decimal places for example, 10.000 23.) ta) The After-Tax Salvage Value of the production equipment at the end of the 2nd year equals 1 $2.460,000 #251,944,600 3 $1,648,400 #4 $1.194,600 #5 5898,400 Based on this information, answer the following questions. (Increase decimal places for any intermediate calculations. higher. Only round your final answer to TWO decimal places: for example, 10,000.23.) (a) The After-Tax Salvage Value of the production equipment at the end of the 2nd year equals # #1 $2,460,000 #2 51,944,600 #3 $1,648,400 #4 $1,194,600 #5 $898,400 (b) The change in Net Working Capital at the end of the 2nd year equals # #1 $1,050,000 #2 $700,000 #3 $350,000 #4 $0 #5 -$350,000