Use the following information for questions 33 - 35: BMW is considering producing a new vehicle. This will be a five year project. Amounts are in millions. a. New equipment will cost $6,000 and depreciation is by the 7-year MACRS method. b. The new car will geherate an additional $2,000 in revenues every year of the project's life. c. In addition to the additional revenues outlined in c. The new vehicle will decrease existing vehicle revenues by $500 in year 1. d. The new project is estimated to have expenses of $500 each year. e. At the conclusion of the project, the equipment can be sold for $1,500. f. The firm's marginal tax rate is 20 percent, and the project's cost of capital is 10 percent. The following is the MACRS Depreciation Table: Year 3-year 5-year 7-year 1 1 33.33% 20.00% 14.29% 2 44.44% 32.00% 24.49% 3 14.82% 19.20% 17.49% 4 7.41% 11.52% 12.49% 5 11.52% 8.93% 6 5.76% 8.93% 21 7 8.93% 24 4.45% Question 33 (1 point) What is the depreciation expense in Year 2? A/ Question 34 (1 point) What is the after tax salvage value of the equipment at the end of year 5? 12 A 15 Question 35 (1 point) Saved What is the after tax OCF in year 1? 18