*Please include excel formulas with answer*

23. Project Analysis and Inflation Mustang Enterprises, Inc., has been considering the Page 255 purchase of a new manufacturing facility for $1.91 million. The facility is to be fully depreciated on a straight-line basis over seven years. It is expected to have no resale value after the seven years. Operating revenues from the facility are expected to be $965,000, in nominal terms, at the end of the first year. The revenues are expected to increase at the inflation rate of 5 percent. Production costs at the end of the first year will be $425,000, in nominal terms, and they are expected to increase at 4 percent per year. The real discount rate is 7 percent. The corporate tax rate is 34 percent. Should the company accept the project