Fill out the following table to determine the payback period for all potential projects. Discard any potential projects that do not meet solaris, Incs maximum payback period. (First two pictures are what needs to be done) thank you!!

Fill out the following table to determine the payback period for all potential projects. Discard any potential projects that de Maximum Payback Period 4.50 years Project A Project B Project C Initial Investment Year Annual Accumulated Annual Accumulated Annual Accumulated 1 2 3 4 5 6 Payback years years years Project F Project G Project H Initial Investment Year Annual Accumulated Annual Accumulated Annual Accumulated 1 2 3 4 5 6 Payback years years years G H J L Using the Payback Method ential projects that do not meet Solaris, Inc.'s maximum payback period. roject C Project D Project E Accumulated Annual Accumulated Annual Accumulated years years years roject H Project I Project Accumulated Annual Accumulated Annual Accumulated years years years min 8 9 1 Information about Potential Projects Solaris, Inc. has ten potential projects it can undertake using the capital which was freed up by outsourcing production of one of its parts. Information regarding the initial investment, residual value, life, and future 2 cash flows of each potential project are as follows: Project A Project B Project C Project D Project E Initial Investment $ 200,000 $ 270,000 $ 100,000 $ 100,000 $ 300,000 5 Residual Value 20,000 10,000 5,000 6 Life of Project (Years) 6 6 3 5 6 7 Cash Flows: Year One 40,000 60,000 40,000 25,000 75,000 Year Two 40,000 60,000 40,000 25,000 75,000 10 Year Three 40,000 60,000 40,000 25,000 75,000 11 Year Four 40,000 60,000 25,000 75,000 12 Year Five 40,000 60,000 25,000 75,000 13 Year Six 40,000 60,000 75,000 14 Project F Project G Project H Project I Project 15 Initial Investment $ 110,000 $ 250,000 $ 190,000 $ 300,000 $ 120,000 16 Residual Value 20,000 5,000 50,000 17 Life of Project (Years) 5 6 5 6 6 18 Cash Flows: 19 Year One 60,000 30,000 100,000 50,000 40,000 20 Year Two 30,000 30,000 60,000 F100,000 40,000 21 Year Three 20,000 30,000 60,000 100,000 20,000 22 Year Four 20,000 60,000 40,000 25,000 20,000 23 Year Five 20,000 60,000 25,000 25,000 10,000 24 Year Six 80,000 50,000 10,000 Note: The receipt of cash from the residual value for all potential projects has already been included in its last year of cash flows. For example, Project A's year six cash flows of $40,000 already include the $20,000 25 residual value of the assets necessary for the project. 06 PHIMMITTLE G955U VI PU l vui Quantity of Part 77c Needed for Production 100,000 Unit Purchase Cost if Outsourced 6.00 Direct Materials per Unit 3.50 Direct Labor per Unit 2.75 Variable Overhead per Unit 2.25 Avoidable Fixed Manufacturing Costs 50,000 Prepare a differential analysis in order to find the cost savings that Solaris will experience if it outsources production of Rhese internal power conditioners. Manufacture Outsource Cost of Producing Part #770's Difference Internally Production Variable Costs: Direct Materials 350,000 $ 350,000 Direct Labor 275,000 275,000 Variable Manufacturing Overhead 225,000 225,000 Avoidable Fixed Costs 50,000 50,000 Purchase Cost of Outsourcing $ 600,000 (600,000) Total Expected Cost of Part #77d's $ 900,000 $ 600,000 $ 300,000 Using the results of this differential analysis, determine the amount of capital that Solaris, Inc. will free up by outsourcing production of part #77c-an internal power conditioner, Amount of Free Capital Created by Outsourcing Production $ 300,000