NPV Calculation for Capital Budgeting, math homework help

NPV Calculation for Capital BudgetingA project requires aninitial investment of $200,000 and expects to produce a cash flow beforetaxes of 120,000 per year for two years (i.e., cash flows will occur att = 1 and t = 2). The corporate tax rate is 30%. The assets willdepreciate using the MACRS - 3-year schedule: (t = 1, 33%); (t = 2:45%); (t = 3: 15%); (t = 4: 7%). The company's tax situation is suchthat it can use all applicable tax shields. The opportunity cost ofcapital is 12%. Assume that the asset can sell for book value at the endof the project. Calculate the NPV of the project (approximately). Basedon your results, please explain in a one page write up whether or notyou would accept or reject the investment.