(CHAPTER 10) A company is considering a 3-year project that requires paying $5,000,000 for a cutting edge production equipment. This equipment falls into the 5-year MACRS class and will have a market value of half its original purchase price after 3 years. The project requires an initial investment in net 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. The required rate of return on projects like this one is 10 percent. Year 1 2 3 4 Property Class Three-Year Five Year 33.3396 20.0096 4.4.44 32.00 14.82 19.20 7.41 11.52 11.52 Seven-Year 14.20% 24.49 17.40 12.49 8.93 8.03 8.93 4.45 5 6 7 8 5.70 Based on this information answer the following questions. Increase decimal places for any intermediate calculations, from the default 2 to 6 or higher. Only round your final to decimal (a) The After-Tax Salvage Value of the production equipment at the end of the 3rd year equals # #1 $2,460,000 02 $2,076,000 #3 51.944,600 #4 $1,710,000 #5 $1.326,000 (b) The change in Net Working Capital at the end of the 3rd year equals o 01 $1,050,000 #2 5700,000 83 $350,000 #4 $0 #5 $350,000 Property Class ar Five-Year 20.0096 32.00 19.20 11.52 11.52 5.76 Seven-Year 14.29% 24.49 17.49 12.49 8.93 8.93 8.93 4.45 swer the following questions. (Increase decimal places for any intermediate calculations, from the default Es: for example, 10,000.23.) me of the production equipment at the end of the 3rd year equals #1 #2 #3 #4 #5 ing Capital at the end of the 3rd year equals #