For this assignment I need to work it out through Excel, please walk me through the calculations step by step with formulas.

DO NOT JUST STICK A TABLE IN I WILL NOT KNOW WHAT I AM LOOKING AT

Uncle Elmo is contemplating a $$10,000$ investment in a methane gas generator. He

estimates his gross income would be $$2000$ the first year and increase by $$200$ each

year over the next $10$ years. His expenses of $$200$ the first year would increase by $$200$

each year over the next $10$ years. He would depreciate the generator by MACRS

depreciation, assuming a $7-$year property class. A $10-$year$-$old methane generator has

no market value. Theincome tax rate is $40\%.$

a$)$ Construct the after$-$tax cash flow for the $10-$year project life.

b$)$ Determine the after$-$tax rate of return on this investment. Uncle Elmo thinks it should be at

least $8\%.$

c$)$ If Uncle Elmo could sell the generator for $$7000$ at the end of the fifth year, would his rate of

return be better than if he kept the generator

for $10$ years?