Pierre Imports is evaluating the proposed acquisition of new equipment at a cost of $900,000. In addition the equipment would require modifications at a cost of $50,000 plus shipping costs of $10,000. The equipment falls into the MACRS 3-year class, and will be sold after 3 years for $100,000. The equipment would require increased net working capital of 60,000. The equipment is expected to save the company $70,000 per year in before-tax operating costs. The company's marginal tax rate is 21% and its cost of capital is 11%.

a. What is the cash outflow at Time 0?

b. Calculate net operating cash flows in years 1, 2, and 3? MACRS 3 year class: 0.3333, 0.4445, 0.1481, 0.0741

c. Calculate the non-operating terminal year cash flow.

d. Calculate net present value. Should the machine be purchased?

Please show all work in Excel with Formulas so I can do a new problem on my own. Thank you in advance