Russell Corporation has the following information about the purchase of a new piece of equipment:

Cash revenues less cash expenses $$165,000$ per year

Cost of equipment $$600,000$

Salvage value at the end of the $9$th year $$60,000$

Increase in working capital requirements $$120,000$

Tax rate $30$ percent

Life $9$ years

The cost of capital is $13$ percent.

Required $($use Excel$)$:

a$.$ Calculate the following assuming straight$-$line depreciation:

i$.$ Calculate the after$-$tax net income for each of the nine years.

ii$.$ Calculate the after$-$tax cash flows for each of the nine years.

iii. Calculate the after$-$tax payback period.

iv$.$ Calculate the accrual accounting rate of return on original investment for each of the nine years.

v$.$ Calculate the net present value $($NPV$).$

vi$.$ Calculate the internal rate of return $($IRR$).$

b$.$ Calculate the following assuming that the company is using the seven$-$year MACRS half$-$year convention without a salvage value:

i$.$ Calculate the after$-$tax cash flows for each of the nine years.

ii$.$ Calculate the after$-$tax payback period.

iii. Calculate the net present value $($NPV$).$

iv$.$ Calculate the internal rate of return $($IRR$).$