ABC Company is considering two capital investment proposals. Estimates regarding each project are provided below:

Project BlueProject Gray

Initialinvestment$400,000$550,000

Annual netincome20,00047,000

Net annual cashinflow100,000125,000

Estimated usefullife5years7years

Salvagevalue00

The company requires a 9% rate of return on all new investments.

Attach an MSExceldocumentshowingformulas for Project Gray1)thepresent value of the cash flows,2)thenet present value of this project and3)the time it takes to get the cash pay back.

Please show calculations and not just numbers i want to learn!