2. (70% Marks) An investment of $85,000 is made for a 3D-printing machine. It is expected to generate an annual revenue of $48,000 with annual expenses of $17,000. The project life is 8 years and the equipment has a class life of 5 years and MACRS-GDS depreciation is used. The 3D-printing machine will have a salvage value estimated at $5,000 when the project is complete (treat it as a revenue in the 9th year). The equipment has a class life of 5 years, MACRS-GDS depreciation will be used, and the income taxes are 35%. The required return (discount rate) is 10%. A loan for $30,000 is needed for 3 years and the interest rate is 15%. First construct a table similar to table 12.1 or 12.2 and then (use excel so that you can reuse the format for your project part 2): a. Determine the Payback Period in years. b. Determine the Discounted Payback Period in years. d. Determine the Future Worth of the net profits. e. Determine the Average Annual Worth of the net profits. 1. Determine the Returns on Investment - ROI and ROI-D, and AW (ROI). Table 12.1: Cash flows of additive manufacturing project (Project A) Depreciation Discounted Total Cumulative Discounted Table Net Reven Expanse Flow Amor Flow Profits Cash Flow CEAT Prefits LK D RO DO TIO ZBO( 0 Net Profits Pois Flow-AT ECFATO INPU). 0 -30,000 -30,000 690293420,056 -1,643 10,1379, 99 Total After Profits Taxes CFATTO ECFATO NO -30,000 -30,000 11.24 -18,576 13,406 -5,1702 ,172 7212 2,042 ZA 13,482 15,524 9 .777 12.000 27.524 12.000 27.524 27.524 2.000 1.396 11.13 44.45 16.665 22.225 1.03 -32 E CFBT LCF) CFALD 50.000 - 50.000 20.000 - 10000 30,000 20.000 20,000 -8,042 11,958 20,000 -8.04 11.95 1300 200000 30.000 20.000 200100 1000427 45,513 1,371 TP 0 534 -1,448 4.746 6,518 8.000 18,349 3.705 16,295 5,590 5.966 7.7082,5219.334 3206848715.290 - 1 50,000 45,873 Table 12.2: Cash flows of computer security project (Project B) Depreciation Cash Discounted Cumulative Discounted Taxes Revenue Exp Flow Flow Taxable Income Flow Total Cash Flow Total Net Profits Net Before Cash Amount Rate Amount CFAT Profits C O 0 25.000 2.500 7,90 30.000 LOCIETO LCFO CHALO O 50,000 -50,000 25.000 -25.000 18,000 78710,113 12.000 1.000 - 7 9 9,113 12.000 18.000 -7.57 10.113 1.369 2.000 .000 1 19,113 717 12.000 15.000 18.000 12.000 18.000 18,000 Profits Flow Profits FlowAT ECFATO INPO. 3.000 25,000 23706 .881 -18 119 18 7 415 -10,484 4.800 3,953 6.515 DRODOTTO TPO CFATO ZCFATO NYO 2B00 0 25,000 20.00 10,000 3,500 2200 -17.087 3.000 3.100 16,000 39 15 10,098 3.323 19.20 7031 2.812 2.10: 7.52 11.52 11,8234,5099,504 ,6 91414456 11.52 5.76012260 4. 5 13.104 5.76 15,120 6,048 11,92 30872 20581 12.00 SIS 30.000 30.000 OVUTI 17.180