Determine the payback period for an investment.

Evaluate the acceptability of an investment project using the net present value method.

Evaluate the acceptability of an investment project using the internal rate of return method.

Compute the simple rate of return on an investment.

Only have a problem with 3 and 4. Please make sure to add the formula.

Comparison of Capital Budgeting Methods Excel ?? FILE HOME INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW Sign In Calibri 11A A Paste 1 u. ?? 2> -. Alignment Number Conditional Format as Cell Cells Editing Formatting Table Styles Clipboard Font Styles E7 Laurman, Inc. is considering the following project 2 Required investment in equipment 3 Project life 4 Salvage value 2,205,000 225,000 6 The project would provide net operating income each year as follows 7 Sales 8Variable expenses 9Contribution margin 10 Fixed expenses: 11Salaries, rent and other fixed out-of pocket costs 12 Depreciation 13 Total fixed expenses 14Net operating income 15 16 Company discount rate 17 18 1. Compute the annual net cash inflow from the project 19 2,750,000 1,600,000 1,150,000 520,000 50,000 870,000 1896 630,000