Question 20 1 pts Question 019 - 20 will use the following setup. Cyclone Industrial is considering a project with an initial cost of $3.5 million to purchase a piece of equipment, which will be depreciated straight-line to a book value of $500,000 over its 5-year life. The new equipment will reduce the operating costs by $850.000 per year (This is a pre-tax figure) There is an initial investment in the net working capital (NWC) of $450,000 which will be maintained at this level until the NWC is recovered in the end The equipment can be sold at $600,000 in the end. The marginal tax rate is 35% What are the operating cash flows (OCF) over the lifetime of the equipment? 5797,500 per year from year 1 to year 5 $762.500 per year from year 1 to year 5 $762.500 per year from year 1 to year 4 and 1,362.500 in year 5 $552.500 per year from year 1 to years D Question 21 1 pts 20. Following #19 - By including all the components, what are the incremental free cash flows (FCF) over the lifetime of the equipment? Year o 14 5 $5.950.000 $762,500 per year 51.777.500 33.950.000 5797.500 per year $1.512.500 53.500.000 - 5557.500 per year 51.602.500 $ 950.0005762.500 per year $1812.500 $5.950.000 5797.500 per year 51.547.500