Consider an investment that has a project life of 12 years and requires an investment of $1, 250,000 at time zero for machinery and equipment to be depreciated over 10 years with the straight-line depreciation method with a half year convention (starting in year 1 and continuing to year 11). Annual revenue is estimated to be $ 300,000 and annual operating costs of $95,000. $250,000 is needed for working capital at time zero. The salvage value of the machinery and equipment will be zero while an environmental remediation cost of $80,000 will be required to be paid at the end of year 10 as an additional operating cost.

The minimum After Tax Cash Flow ROR is 12.5% and the effective income tax rate is 20%. Calculate the After Tax Cash Flow, NPV, and ROR of the project.

Please Use an excel format so that I can follow as well and learn. THANKS

Question 1 (25 points): Consider an investment that has a project life of 12 years and requires an investment of $1,250,000 at time zero for machinery and equipment to be depreciated over 10 years with the straight-line depreciation method with a half year convention (starting in year 1 and continuing to year 11). Annual revenue is estimated to be $300,000 and annual operating costs of $95,000. $250,000 is needed for working capital at time zero. The salvage value of the machinery and equipment will be zero while an environmental remediation cost of $80,000 will be required to be paid at the end of year 10 as an additional operating cost The minimum After Tax Cash Flow ROR is 12.5% and the effective income tax rate is 20%. Calculate the After Tax Cash Flow, NPV, and ROR of the project