**PLEASE, Show work and formula in excel**

Use the model below to analyze the following problem: Some new production machinery has a first cost of $150,000. It's useful life is 10 years. It's estimated operating and maintenance costs are $15,000 and will increase by $3,000 each year. The before-tax market value will be $75,000 at the end of the first year then will decrease by $5,000 annually. This property is a 7 year MACRS property. The company uses a MARR of 9% and the marginal tax rate is 40%. Calculate the after tax cash flows and the minimum cost life.

Market Value Book Value Gain or Loss Gain/Loss Tax (@28%) ATCF if Disposed of O&M Expense MACRS Depreciation, dt Taxable Income Tax Savings (@28%) O&M Depreciation ATCF 50,000 85,7101 -35,710 9,999 59,999 - 10,000 14,290 -24,290 6,801 -3,199 45,000 61,220 -16,220 4,542 49,542 - 14,000 24,490 -38,490 10,777 -3,223 43,730 -3,730 1,044 41,044 17,490 -35,490 9,937 -8,063 40,000 35,000 -18,000 -22,000 31,240 3,760 -1,053 33,947 12,490 -34,490 9,657 -12,343 30,000 22,3101 7,6901 -2,153 27,8471 -26,000 8,930 -34,930 9,780 -16,220 25,000 13,390 11,610 -3,251 21,749| -30,000 8,9301 -38,930 10,900 -19,100 20,000 4,460 15,540 -4,351 15,649 -34,000 8,930 -42,930 12,020 -21,980 15,000 0 15,000 -4,200 10,800 -38,000 4,460 -42,4601 11,889 -26,111 10,000 0 10,000 -2,800 7,200 -42,000 0 -42,000 11,760 -30,240 5,000 0 5,000 -1,400 3,600 -46,000 0 -46,000 12,880 -33,120