$1.$ For years $2$ through $5,$ the product research team at Jolly Motors conducted some research. They arrived at the following profit contribution growth projections shown in the table below:

Product Annual Growth Rate

Jolly$-$Homer $8\%$

Jolly$-$Mower $4\%$

Jolly$-$Pooler $2\%$

Unspecified $3\%$

In arriving at the yearly growth rates shown above, the product research team concluded that Jolly$-$Homer is the product with the higher anticipated growth since most homes need this product. Though Jolly$-$Mower is popular, different houses have different lawn sizes, hence, several houses may not use the mower. Similarly, not all houses have pools. This reasoning accounted for the differences in growth rates. When the increase is not tied to a specific product, the team estimated the annual growth to be $3\%($see the entry "Unspecified" in the above table$).$ Use the above table for yearly growth in incremental profit contributions for years $2$ thru $5.$ For example, in the category "Incremental Profit Contributions from Social Media Marketing", Jolly$-$Homer's yearly growth rate for years $2$ through $5$ will be $8\%,$ while Jolly$-$Mower's incremental profit contributions year$-$by$-$year growth should be $4\%.$ Similarly, all the items in "Incremental Profit Contributions from Web" and "Incremental Profit Contributions from Market Research Costs" should use a yearly growth rate of $3\%$ for years $2$ through $5($since these increases are not tied to a specific product$).$

$3.$ Arrive at net cash flows for years $1$ thru $5.$ Use the information given in step $2$ above for incremental profit contributions for years $2$ thru $5.$

$4.$ Compute the following: Payback Period; Internal Rate of Return $($IRR$)$; ROI; and Profitability Index.

$5.$ For the discount rate of $7\mathrm{.}5\%,$ compute NPV using two different methods: $(1)$ Using the Excel formula, and $(2)$ Using individual period discount factors: Arrive at discount factors for each year for years $0$ through $5$; Multiply the net cash flow for the year with the discount factor; and add the resulting values for years $0$ through $5$ to arrive at NPV$.$