Exercise I Worthington Inc. is considering a project that has the following cash flow data. Year 0 1 2 3 $300 Cash flows -$500 $150 $200 1. What is the project payback period? 2. What is the project discounted payback if the required rate of return is 5%? 3. Find IRR. 4. Find NPV Exercise II Epiphany Industries is considering a new capital budgeting project that will last for three years. Epiphany plans on using a cost of capital of 12% to evaluate this project. Based on extensive research, it has prepared the following incremental cash flow projects: Year 0 1 2 3 Sales (Revenues) 150,000 150,000 150,000 Cost of Goods Sold (50% of Sales) 75,000 75,000 75,000 Depreciation 25,000 25,000 25,000 Taxes rate (35%) +(-) increase/(decrease) in working capital 5,000 5,000 -10,000 - capital expenditures 5. Find EBIT for year 1, 2 and 3. 6. Find OCF for year 1, 2 and 3. 7. Find Free cash flow for 1, 2 and 3. 8. Find NPV -90,000