$***$Solve manually $($i$.$e$.$ pen and paper$)$ showing full work without excel$***$

A project has equipment requirements that will cost $$150,000$ installed. NWC of $$50,000$ will also be required. The project is replacing old equipment that can be sold for $$25,000,$ book value $0.$ If accepted, each year the project will generate new revenues of $$250,000,$ and new expenses of $$125,000.$ The equipment will be depreciated as a $3$ year asset under MACRS. The useful life is $5$ years. The new equipment has an estimated salvage value of $$20,000.$ The company's tax rate is $40\%.$

a$.$ What is the NINV for the project?

b$.$ Calculate the NPV$,$ MIRR $($this is different from IRR$)$ and PI for the project, if your required rate is $12\%?$

TABLE $1$ MACRS Half$-$Year Convention