Solve using Excel. Please show and explain all steps.

12- A firm may invest in equipment that will be depreciated by double declining balance depreciation with 22 conversion to straight-line depreciation in year 5. For depreciation purposes a $700,000 salvage value at the A end of 6 years is assumed. But the actual value is thought to be $1,000,000, and it is this sum that is shown in the before-tax cash flow. Year Before-Tax Cash Flow (in $1000) 0 -$12,000 1 1,727 2 2,414 3 2,872 4 3,177 3,358 5 6 1,997 1,000 Salvage value If the firm wants a 9% after-tax rate of return and its combined incremental income tax rate is 24%, determine by annual cash flow analysis whether the investment is desirable