ANSWER QUESTIONS 12 TO 16 USING THE FOLLOWING INFORMATION 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 (ka) amortized as a regular annuity over 3 years, and $300,000 is financed with equity at a cost of equity of 12% (ke) The tax rate (t) is 30% Given the 3-year life of the equipment, the depreciation schedule is as follows Year 1. $333,000 Year 2. $445,000 Year 3. $148,000, and Year 4 $74000 Some basic cash income and cash expense data for this equipment is shown below. Operating Cash Income (Olt) is $800,000 per year, years 1 to 3 Operating Cash Expenser (OE 1) is $300,000 per year, years 1 to 3. This investment's Equity method Net Cash Flow for year 1 is 5224303 5206.056