EXCEL PART: Submission format: Excel File ABC Corporation has a machine that requires repairs or should be replaced. ABC has evaluated the two options and calculated the cash flows resulting from each option as follows: Option A: Repair the Machine Year 0 Cash Flow $60,500.00 1 $16,500.00 Year 2 $33,100.00 3 $17,500.00 4 $17,200.00 5 $10,700.00 Option B: Buy a new Machine Cash Flow 0 $330,500.00 1 $54,300.00 2 $123,000.00 3 $113,800.00 4 $122,900.00 5 $120,100.00 FIN 301 - Capital Budgeting Assignment WRITING PART: Submission format: Word Document You have recently been hired by XYZ corporation and your first assignment is to help them decide which of these two options should be pursued. You would like to apply the capital budgeting and Time Value of Money concepts you have learnt in FIN 301 to analyze the solution and present it to your boss in three days. Conduct the analysis and calculate Payback period for each option, IRR of each option and PI and NPV for each option at four Discount Rates (R) of 8%, 12%, 16%, and 20% Write a memo to your boss, explaining the results of your analysis, your decision and include a table and a chart showing your analysis. # Requirements: 1 Compute Pay Back for each Option 2 Compute IRR for each Option 4 5 6 11 12 A B Pay Back IRR Compute NPV and PI for each option using disccount rates: R NPV A 8% 12% 16% 20% NPV B # R PI B 7 8% 8 12% 9 16% 10 20% NPV Profile chart with R on X Axis and NPV on Y axis (Two lines one each for NPV A and NPV B) A One page professional memo written in MS Word explaining your decision betwwen options A and B. Grading: Excel Analysis: Word memo: Timeliness: 70% of overall assignment grade 30% of overall assignment grade A 5% penalty for every day delayed. Assignment will not be accepted after 5 late days. Note: Use Workout Sheet to compute and showcase your work. IT IS IMPORTANT THAT NPV & IRR IS COMPUTED USING EXCEL IN BUILT FUNCTIONS.