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Management Reporter Server Components Installation Failed

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I am trying to install MR for AX 2012 R3, looking at the log file, everything seems fine until it started to execute. (SQL Server 2012)

2015-12-06 12:18:28Z === Starting execution phase ===
2015-12-06 12:18:28Z Executing 'Management Reporter server components' this pass.
2015-12-06 12:18:28Z Queueing for installation: Management Reporter server components
2015-12-06 12:18:28Z Component installation task completed successfully.
2015-12-06 12:18:28Z Common Property Install Path set to 'C:\Program Files\Microsoft Dynamics AX\60'.
2015-12-06 12:18:28Z Installation Path retrieved from registry. Value: 'C:\Program Files\Microsoft Dynamics AX\60'
2015-12-06 12:18:28Z Running Msiexec.exe with these parms: /i "E:\MSI\MRServer64\MRServer64.msi" INSTALLLOCATION="C:\Program Files\Microsoft Dynamics AX\60\Management Reporter" /qb! /l*v "C:\Program Files\Microsoft Dynamics AX\60\Setup Logs\2015-12-06 12-15-29\MRServer64 Log.txt" DIRECTEXECUTE=1 /norestart
2015-12-06 12:18:28Z Running synchronously.
2015-12-06 12:19:01Z ******************************************************************************************************

2015-12-06 12:19:01Z Management Reporter configuration failed. See the log file for more information.

2015-12-06 12:19:01Z ******************************************************************************************************
2015-12-06 12:19:01Z ******************************************************************************************************

2015-12-06 12:19:01Z Result 'Application Service', status = failed:
2015-12-06 12:19:01Z The application service port can't be opened in the Windows Firewall because the firewall is disabled or the Windows Firewall service isn't running. Configuration will continue, but a firewall rule will not be added.
2015-12-06 12:19:01Z An error occurred during database deployment. View the deployment log for more information.


2015-12-06 12:19:01Z ******************************************************************************************************
2015-12-06 12:19:01Z ******************************************************************************************************

2015-12-06 12:19:01Z Result 'Process Service', status = failed:
2015-12-06 12:19:01Z Application Service failed to deploy preventing this deployment from starting


2015-12-06 12:19:01Z ******************************************************************************************************
2015-12-06 12:19:01Z ******************************************************************************************************

2015-12-06 12:19:01Z Result 'AX 2012 Data Mart', status = failed:
2015-12-06 12:19:01Z The Management Reporter Application Service has not been deployed.


2015-12-06 12:19:01Z ******************************************************************************************************
2015-12-06 12:19:01Z =====C:\ProgramData\Microsoft Dynamics ERP\Management Reporter\Logs\Deployment-2015-12-06_12-18-38-PM.log=====
2015-12-06 12:19:01Z 12/6/2015 12:18:38 PM - Validating password against password policy for computer AXSQLTEST
2015-12-06 12:19:01Z 12/6/2015 12:18:38 PM - Validating user sqladmin, domain MIFCO, and password.
2015-12-06 12:19:01Z 12/6/2015 12:18:38 PM - Checking whether database ManagementReporter exists
2015-12-06 12:19:01Z 12/6/2015 12:18:38 PM - Checking whether current user has SQL role sysadmin
2015-12-06 12:19:01Z 12/6/2015 12:18:38 PM - Checking SQL Server version; result: 11.0.3128.0
2015-12-06 12:19:01Z 12/6/2015 12:18:39 PM - Validating password against password policy for computer AXSQLTEST
2015-12-06 12:19:01Z 12/6/2015 12:18:39 PM - Validating user sqladmin, domain MIFCO, and password.
2015-12-06 12:19:01Z 12/6/2015 12:18:39 PM - Checking port 4712 against ports with active TCP listeners.
2015-12-06 12:19:01Z 12/6/2015 12:18:39 PM - Starting deployment of Management Reporter 2012 Application Service
2015-12-06 12:19:01Z 12/6/2015 12:18:39 PM - Creating PrincipalContext for domain MIFCO
2015-12-06 12:19:01Z 12/6/2015 12:18:39 PM - Finding Principal for user sqladmin in context for domain MIFCO
2015-12-06 12:19:01Z 12/6/2015 12:18:39 PM - Found database package: C:\Program Files\Microsoft Dynamics AX\60\Management Reporter\Server\Packages\ManagementReporter.dacpac
2015-12-06 12:19:01Z 12/6/2015 12:18:39 PM - Found database package: C:\Program Files\Microsoft Dynamics AX\60\Management Reporter\Server\Packages\SchedulerStore.dacpac
2015-12-06 12:19:01Z 12/6/2015 12:18:39 PM - Found database package: C:\Program Files\Microsoft Dynamics AX\60\Management Reporter\Server\Packages\ConnectorStore.dacpac
2015-12-06 12:19:01Z 12/6/2015 12:18:39 PM - Deployment parameters:
2015-12-06 12:19:01Z DatabaseCollation: SQL_Latin1_General_CP1_CI_AS
2015-12-06 12:19:01Z WindowsLoginToCreate: MIFCO\sqladmin
2015-12-06 12:19:01Z FirstAdminUserName: MIFCO\sqladmin
2015-12-06 12:19:01Z FirstAdminSid: S-1-5-21-2577876009-2657114398-2431606998-1290
2015-12-06 12:19:01Z FirstAdminDisplayName: SQL Admin

2015-12-06 12:19:01Z 12/6/2015 12:18:39 PM - Extracting supporting files for database deployment...
2015-12-06 12:19:01Z 12/6/2015 12:18:39 PM - Beginning database deployment...
2015-12-06 12:19:01Z 12/6/2015 12:18:40 PM - Initializing deployment (Start)
2015-12-06 12:19:01Z 12/6/2015 12:18:59 PM - Initializing deployment (Complete)
2015-12-06 12:19:01Z 12/6/2015 12:18:59 PM - Analyzing deployment plan (Start)
2015-12-06 12:19:01Z 12/6/2015 12:18:59 PM - Analyzing deployment plan (Complete)
2015-12-06 12:19:01Z 12/6/2015 12:18:59 PM - Updating database (Start)
2015-12-06 12:19:01Z 12/6/2015 12:19:00 PM - Creating ManagementReporter...
2015-12-06 12:19:01Z 12/6/2015 12:19:00 PM - Creating [FILES]...
2015-12-06 12:19:01Z 12/6/2015 12:19:01 PM - Updating Collation
2015-12-06 12:19:01Z 12/6/2015 12:19:01 PM - Creating [GeneralUser]...
2015-12-06 12:19:01Z 12/6/2015 12:19:01 PM - Creating [Connector]...
2015-12-06 12:19:01Z 12/6/2015 12:19:01 PM - Creating [Scheduling]...
2015-12-06 12:19:01Z 12/6/2015 12:19:01 PM - Creating Master Key...
2015-12-06 12:19:01Z 12/6/2015 12:19:01 PM - .Net SqlClient Data Provider: Msg 33094, Level 16, State 1, Line 1 An error occurred during Service Master Key decryption
2015-12-06 12:19:01Z 12/6/2015 12:19:01 PM - Script execution error. The executed script:
2015-12-06 12:19:01Z CREATE MASTER KEY ENCRYPTION BY PASSWORD= N'$(DatabaseMasterKey)';


2015-12-06 12:19:01Z 12/6/2015 12:19:01 PM - An error occurred while the batch was being executed.
2015-12-06 12:19:01Z 12/6/2015 12:19:01 PM - Updating database (Failed)
2015-12-06 12:19:01Z 12/6/2015 12:19:01 PM - The database deployment failed. Additional information: Could not deploy package.
2015-12-06 12:19:01Z Error SQL72014: .Net SqlClient Data Provider: Msg 33094, Level 16, State 1, Line 1 An error occurred during Service Master Key decryption
2015-12-06 12:19:01Z Error SQL72045: Script execution error. The executed script:
2015-12-06 12:19:01Z CREATE MASTER KEY ENCRYPTION BY PASSWORD= N'$(DatabaseMasterKey)';
2015-12-06 12:19:01Z ==============================================================================================================
2015-12-06 12:19:01Z ******************************************************************************************************

2015-12-06 12:19:01Z Component installation task stopped due to an error.

2015-12-06 12:19:01Z ******************************************************************************************************
2015-12-06 12:19:02Z S260FinishedInfo


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