Hector Electronics is considering a project which will require the purchase of $5 million in new equipment. The equipment will be depreciated straight-line to a zero book value over the 5-year life of the project. Hector's expects to sell the equipment at the end of the project for 10% of its original cost. Annual sales from this project are estimated at $2.3 million. Hector desires a 12% rate of return on this project. The tax rate is 40%. 1. What is the value of the depreciation tax shield in year 2 of the project? 2. What is the amount of the after-tax salvage value of the equipment