PLEASE SHOW WORK IN EXCEL

You have been asked by the president of your company to evaluate the proposed purchase of a $120,000 new Mack truck. The truck falls into the MACRS three-year class, and it will be sold after three years for $30,000 Use of the truck will require an increase in net operating working capital (small parts inventory) of $12,000 at the time of purchase the increase in net operating working capital will be "recovered" at the end of year 3 The truck will have no effect on revenues, but it will increase EBITDA (Earnings Before Interest Taxes, Depreciation and Amortization) by $54,000 each year by reducing labor costs Two years ago the company spent $5,000 to investigate which truck to buy Interest expense is $3,000 per year The company's marginal tax rate is 30% per year Cost of Capital = 12% MACRS depreciation percentages Year 0 1 2 2 4 MACRS percentage 0 33.33% 14.81% 44.45% 7.41% a. What is the net investment in the truck? (that is, what is the Year 0 net cash flow)? b. What is the operating cash flow in year 1? c. What is the terminal (non-operating) cash flow at the end of year 3? d. The truck's cost of capital is 12%, what is its Net Present Value (NPV)? e. Calculate the IRR (Internal Rate of Return) of the Truck. f. Calculate the MIRR (Modified Internal Rate of Return) of the Truck