ABC Company is considering two capital investment proposals. Estimates regarding each project are provided below: Project Blue Project Gray Initial investment $400,000 $550,000 Annual net income 20,000 47,000 Net annual cash inflow 100,000 125,000 Estimated useful life 5 years 7 years Salvage value 0 0 The company requires a 9% rate of return on all new investments. Attach an MS Excel document showing formulas for Project Gray 1) the present value of the cash flows, 2) the net present value of this project and 3) the time it takes to get the cash pay back.

please show calculations, id like to learn