2. Capital Budgeting (20 points) Vernon Company has been offered an opportunity for investment as follows: The project requires an additional $10,000 (above cost of equipment) of working capital. Cost of equipment needed $380,000 Annual Cash Receipts Year 1 $100,000 Year 2 100,000 Year 3 Year 4 100,000 100,000 225,000 Year 5 Salvage Value at end of 5 years 25,000 REQUIRED: a. Prepare a timeline for the above investment b. Determine the payback for this investment? Would be acceptable under the Payback method if a required payback period is three years? Used the net present value method for this investment if the discount rate is 14% d. Determine the profitability index e. Determine the internal rate of return. f. should they make the investment? Explain your