please solve it by hand step by step.

7-7 A mineral reserve containing 100,000 tons of gold ore is to be devel- oped and produced uniformly (20,000 tons per year) over years 1 through 5 by a corporate investor. The estimated net smelter return value of the ore is $120 per ton in year 1, and the net smelter return is expected to increase $15 per ton in each following year. Royalties are 5% of gross income. A one-time mineral development cost of $900,000 is to be incurred in time zero. Expense 70% of the mine development cost at time zero and capitalize the remaining 30% to be amortized over sixty months with a six month (6/60) amortization deduction at time zero. A mineral rights acquisition cost of $800,000 also will be incurred in time zero (the basis for cost depletion calculations), along with equipment cost of $1,000,000 to be depreciated using MACRS depreciation beginning at year one, for a 7-year life with the half year one convention. Write off the remaining book value from the deprecia- ble asset at year 5. $1,000,000 will be invested in working capital at year 0 for in-process inventories, product inventories and accounts receivable. Assume all assets, including inventories, will be liquidated at the end of year 5 for a sale value of $1,000,000 and write off all remaining book values to determine the gain or loss. Treat the gain or loss as ordinary income. Operating costs are $900,000 in year one, escalating $100,000 per year in the following years. Other income and tax obligations do not exist against which to use negative taxable income, so losses must be carried forward to make the project eco- nomics stand alone. Determine the project cash flows for years 0 through 5, assuming a 40% effective income tax rate, and calculate the project after-tax DCFROR and NPV for i* = 12%. cing fooilitu Tho nrncars