Al Falah Incorporated company is considering a new machinery system that will initially cost $1 million. It will save $300,000 per year in Inventory and warehousing costs. The system is expected to last for four years and will be depreciated using 3-year MACRS. The system is expected to have a salvage value of $60,000 at the end of year 4. There is no impact on net working capital. The marginal tax rate is 25%. The required return is 10%. Evaluate whether Al Falah should purchase this Machine or not.

The 3-Year MACRS Tax Schedule is given as :

Year MACRS percent

1 .3333

2 .4445

3 .1481

4 .0741

Make it look like it has been done on an excel sheet.