Question 2.(15 points)Your company is evaluating new equipment that will cost $2,000,000. The equipment is in the MACRS 3-year class and will be sold after 3 years for $150,000.Use of the equipment will increase net working capital by 200,000.The equipment will save $900,000 in operating costs each year for 3 years. The company's tax rate is 35 percent and its cost of capital is 12%.

a. Calculate the cash flow in Year 0.

b. Calculate the incremental operational cash flows.

Reference: MACRS Depreciation Percentages for three-year class life assets: 0.3333 0.4445 0.1481 0.0741 c.Calculate the non-operating terminal year cash flow.

d. Calculate the project's payback period.

e. Calculate the project's NPV.

f. Calculate the project's IRR.

g. Calculate the project's MIRR.

h. Investment Decision:Should the project be accepted or rejected? Why or why not?

In Excel please.

Thank you!!