Clarabel Ltd is reviewing a capital investment proposal. The initial cost of the project and the net cash flows for each year are presented in the schedule below. It is estimated that there would be no salvage value at the end of the investment's life. Year initial cost and carrying amount annual cash flows annual net profit 0 $ 187,500 1 $ 87,500 $ 62,500 $ 18,750 2 $ 52,500 $ 56,250 $ 21,250 3 $ 26,250 $ 50,000 $ 23,750 4 $ 8,750 $ 43,750 $ 26,250 5 $ - $ 37,500 $ 28,750 Clarabel Ltd is reviewing a capital investment proposal. The initial cost of the project and the net cash flows for each year are presented in the schedule below. It is estimated that there would be no salvage value at the end of the investment's life. Year initial cost and carrying amount annual cash flows annual net profit 0 $ 187,500 1 $ 87,500 $ 62,500 $ 18,750 2 $ 52,500 $ 56,250 $ 21,250 3 $ 26,250 $ 50,000 $ 23,750 4 $ 8,750 $ 43,750 $ 26,250 5 $ - $ 37,500 $ 28,750 Terry's uses a required rate of retur.n of 8 per cent to evaluate new capital investment proposals. You are required to answer all questions. Where necessary round off to two decimal places, do not use formulas to calculate the return rates. Present value of $1.00 (Uneven) Periods 8% 10% 12% 14% 16% 18% 1 0.926 0.909 0.893 0.877 0.862 0.847 2 0.857 0.826 0.797 0.769 0.743 0.718 3 0.794 0.751 0.712 0.675 0.641 0.609 4 0.735 0.683 0.636 0.592 0.552 0.516 5 0.681 0.621 0.567 0.519 0.476 0.437 Present value of an ordinary annuity of $1.00 (even) Periods 6% 8% 10% 12% 14% 15% 1 0.943 0.926 0.909 0.893 0.877 0.870 2 1.833 1.783 1.736 1.690 1.647 1.626 3 2.673 2.577 2.487 2.402 2.322 2.283 4 3.465 3.312 3.170 3.037 2.914 2.855 5 4.212 3.993 3.791 3.605 3.433 3.352 Calculate the project's payback period.