Question: Please explain your work. Don't just paste an excel table. $400,000 capital cost required for purchasing a machine (at time zero) that can generate revenue

Please explain your work. Don't just paste an excel table. $400,000 capital

Please explain your work. Don't just paste an excel table.

$400,000 capital cost required for purchasing a machine (at time zero) that can generate revenue of $180,000 with operating cost of $35,000 for five years (from year 1 to year 5 ). The capital cost is depreciable over 6 years (from year 0 to year 5) based on MACRS 5 -year life depreciation with the half year convention (table A-1 at IRS ). The salvage value will be zero and working capital $50,000. Please calculate NPV and ROR for this project considering the minimum rate of return 10% and 35% income tax

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