A firm is considering an investment in capital equipment. The equipment requires an initial cash outflow of $1,000,000 out of which $700,000 is financed with debt at a 4% cost of debt (ke) amortized as a regular annuty over 3 years, and $300.000 is franced with equity at a cost of equity of 12% (ke) The tax rate (t) is 30% Given the 3-year life of the equpment, the depreciation schedule is as follows: Year 1, $333,000 Year 2,5445,000 Year 3, $148,000, and Year 4. $74.000. Some basic cash income and cash expense data for this equipment is shown below Operating Cash income (Ol) is $800,000 per year, years 1 to 3 Operating Cash Expenso (OE) is $300,000 per year, years 1 to 3. This investments Equity method Net Cash Flow for year ile 1724303 5206056 19,300