A spreadsheet with the following data needs to be updated to incorporate depreciation and taxes. This will require you to consider and model before tax cash flows and after tax cash flows in your models and then determine the appropriate output for your model. Assume straight line depreciation only. Your model should show the before tax and after tax cash flows as well as the PV of the AFTC in each year and, the NPV, which is the final solution. Inputs from the user would include initial investment, marginal tax rate, useful life, salvage value, MARR, annual benefits (revenue), and annual costs. Use Excel with formuals and include excel document.

Initial Cost$100,000

Annual Revenues $81,155

Annual Costs (Excluding Depreciation) $20,000

Year 3 Overhaul $15,390

Year 6 Clean-up Costs $17,690

Equipment Salvage/Book Value $10,000

Useful Life 6 years

r 0.10

Tax Rate 0.35

Equipment Sold For $20,000