Xon, a small oil equipment company, purchased a new petroleum drilling rig for $1,800,000. Xon will depreciate it using MACRS depreciation. The drilling rig has been leased to a firm, which will pay Xon $550,000 per year for 8 years. After 8 years the drilling rig will belong to the firm. If Xon has a 38% combined incremental tax rate and a 12% after-tax MARR, does the investment appear to be satisfactory? Why or why not?

Please solve this question by hand, NO Microsoft Excel functions, only a table may be used. Show correct formulas used to solve the question. Please show all work leading up to the correct answer. Do not copy from another person's work!