Your company is investigating the opportunity to produce MP3 players. The equipment required for the project Initially costs $2,000,000 and will be depreciated on a straight line to $300,000 (not to zero) over the 4 year life of the project. The project manager actually believes that the equipment could be salvaged for $250,000 at the end of the life of the project. The firm's marginal tax rate is 25% but the average tax rate is 27%. The marketing department and production operations department have estimated the following: Forecast Sales per Year Forecast Price per Unit Forecast Variable Cost per Unit Forecast Fixed Costs per Year 1140,000 units $42 $34 $430,000 Part A: What is the after-tax salvage value of the equipment? O $300,000 $250,000 O $262,500 $280,500 $244,500 Part B: What is the Operating Cash Flow (OCF) per year? O $100,000 $623,750 $193,750 $1,053,750 $517,500 Part C. Assume the company spells 140,001 units instead of 140,000. What is the marginal profit of selling that extra unit? $7 O $42 O $1,120,000 $8 $34 Part D: The project requires the company to immediately increase inventory by $170,000, and accounts payable will also immediately increase by $70,000. All investments in net working capital will be reversed at the end of the life of the project. What is the initial investment in Net Working Capital? O $70,000 O $170,000 O $100,000 O $170,000 0-$100,000 $70,000