What is the depreciation expense in Year 1 (in $s)?

What is the depreciation expense in Year 2 (in $s)?

What is the book value of the equipment in year 2?

What is the after tax salvage value of the equipment at the end of year 2?

What is the terminal cash flow (the last cash flow of the project not including the OCF)?

Amazon is considering producing a new laptop. This will be a two year project. a. New equipment will cost $10,000,000 and depreciation is by the 3-year MACRS method. b. The project requires an initial investment in net working capital of $1,000,000 (which will be recaptured at the end of the project). c. Amazon paid $500,000 last year to conduct a market study to see the demand for an Amazon laptop. d. The new laptop will directly generate $6,000,000 in revenues each year of the project's life. e. In addition to the revenues in d., the new laptop will also increase existing Amazon App Store revenues by $500,000 each year of the project's life. f. In addition to the revenues in d., the new laptop will also decrease existing Kindle revenues by $1,000,000 each year of the project's life. g. The new project will have expenses of $1,000,000 each year of the project's life. h. There is no interest expense. i. At the conclusion of the project in two years, the equipment can be sold for $2,500,000. j. The firm's marginal tax rate is 25 percent, and the project's cost of capital is 7 percent