The management of Devine Instrument Company is considering the purchase of a new drilling machine, model RoboDril 1010K, for an independent ten-year project. The machines cost is $650,000 with no salvage value at the end of ten years. The company has been paying 25% for combined federal, state, and local income taxes, a rate that is not expected to change during the period of this investment. Devine Instrument uses straight-line depreciation and a 10% discount rate in evaluating capital investments. The projected pretax operating cash inflows are as follows:

Year	Pretax Cash Inflow	Year	Pretax Cash Inflow
1	65,000	6	300,000
2	80,000	7	270,000
3	120,000	8	240,000
4	200,000	9	120,000
5	240,000	10	80,000

Required Using Excel, compute the following for the proposed investment:

1. Determine the after-tax cash inflow each year of project operation (i.e., at the end of each of years 1 through 10). (40 points)

2. The payback period (in years), under the assumption that the cash inflows occur evenly throughout the year. Round your answer to 1 decimal place. (10 points)

3. The accounting (book) rate of return based on (a) initial investment, and (b) average investment. Round both answers to 1 decimal place. (10 points)

4. The net present value (NPV), rounded to the nearest whole dollar. (10 points)

5. The present value payback period of the proposed investment under the assumption that the cash inflows occur evenly throughout the year. (10 points)

6. The internal rate of return (IRR), rounded to 1 decimal place. (10 points)

7. The modified internal rate of return (MIRR), rounded to 1 decimal place. (10 points)