I do not know how to calculate the discounted cash flow needed for dpb calc

Frank Smith Plumbing Data Needed for analysis: Year-1 Year-2 Project Cost of Capital (borrowing) 12.00% Cost of Truck $200,000 Cost of additional equiment attached to truck $15,000 Tax rate 35% Annual Before Tax & Depreciation Truck Projected Earnings $70,000 $70,000 Depreciation Percentage Rate (MACRS)* 20.0% 32.0% * The proposed truck has an estimated economic life of seven years but will be treated as a five-year MACRS property Calculate the following -- light yellow highlighted cells need to be co Year-0 Annual Before Tax & Depreciation Truck Projected Earnings Depreciation Expense Annual Before Tax Truck Projected Earnings Tax Annual Projected Truck Earnings Depreciation to add back Projected Truck Net Cash Flow -$215,000.00 Year-1 $70,000.00 43,000.00 27,000.00 9,450.00 $17,550.00 Year-2 $70,000.00 68,800.00 1,200.00 420.00 $780.00 43,000.00 68,800.00 $60,550.00 $69,580.00 0.893 0.797 $54,062.50 $55,468.75 0.847 0.718 $51,313.56 $49,971.27 Present Value Factor @ 12% Discounted Cash Flow @ 12% For Calculation of IRR Present Value Factor @ 18% Discounted Cash Flow @ 18% Decision Criteria: Pay Back Period Discounted Pay Back Period (DPB)** Net Present Value Internal Rate of Return Profitability Index 3.59 Years 5.52 Years $28,681.97 16.66% 1.13 Discounted Cash Flow Needed for DPB Calc. Recommend purchasing the truck because the time allocated to pay it back is only 3.59 years and that is less than the amount time Smith Plumbing will use the equipment operationally. Also, the profitability index is greater than 1. The Interal Rate of Return is also higher than the cost of borrowing. Recommend purchasing the truck because the time allocated to pay it back is only 3.59 years and that is less than the amount time Smith Plumbing will use the equipment operationally. Also, the profitability index is greater than 1. The Interal Rate of Return is also higher than the cost of borrowing. mith Plumbing ded for analysis: Year-3 Year-4 Year-5 Year-6 Year-7 Year-8 $65,000 $60,000 $55,000 $50,000 $40,000 $30,000 19.2% 11.5% 11.5% 5.8% ed as a five-year MACRS property for depreciation purposes. 0.0% 0.0% ow highlighted cells need to be completed sion Criteria: Year-3 $65,000.00 41,280.00 23,720.00 8,302.00 $15,418.00 Year-4 $60,000.00 24,725.00 35,275.00 12,346.25 $22,928.75 Year-5 $55,000.00 24,725.00 30,275.00 10,596.25 $19,678.75 Year-6 $50,000.00 12,470.00 37,530.00 13,135.50 $24,394.50 Year-7 $40,000.00 0.00 40,000.00 14,000.00 $26,000.00 Year-8 $30,000.00 0.00 30,000.00 10,500.00 $19,500.00 41,280.00 24,725.00 24,725.00 12,470.00 0.00 0.00 $56,698.00 $47,653.75 $44,403.75 $36,864.50 $26,000.00 $19,500.00 0.712 0.636 0.567 0.507 0.452 0.404 $40,356.52 $30,284.82 $25,195.88 $18,676.70 $11,761.08 $7,875.72 0.609 0.516 0.437 0.370 0.314 0.266 $34,508.15 $24,579.27 $19,409.29 $13,655.77 $8,162.05 $5,187.74