Bradley Corporation has the following information about the purchase of a new piece of equipment:

Cash revenues less cash expenses $$170,000$ per year

Cost of equipment $$600,000$

Salvage value at the end of the $8$th year $$60,000$

Increase in working capital requirements $$120,000$

Tax rate $30$ percent

Life $9$ years

MACRS of $8\mathrm{.}93$

The cost of capital is $13$ percent.

Required $($use Excel$)$:

a$.$ Calculate the following assuming straight$-$line depreciation:

i$.$Calculate the after$-$tax net income for each of the nine years. $$72,334$

ii$.$ Calculate the after$-$tax cash flows for each of the nine years. $$139,000$

iii. Calculate the after$-$tax payback period. $3\mathrm{.}83$ Years

iv$.$ Calculate the accrual accounting rate of return on original investment for each of the nine years. $12\%$

v$.$ Calculate the net present value $($NPV$).$ $$287227\mathrm{.}41$

vi$.$ Calculate the internal rate of return $($IRR$).27\%$

b$.$ Calculate the following assuming that the company is using the seven$-$year MACRS half$-$year convention without a salvage value:

i$.$ Calculate the after$-$tax cash flows for each of the nine years.

ii$.$ Calculate the after$-$tax payback period.

iii. Calculate the net present value $($NPV$).$

iv$.$ Calculate the internal rate of return $($IRR$).$