I provided section 3 due to the numbers being relevant to section 4. section 4 is the one I need answers to. pls and thx you

3 Estimate the annual net income and annual net cash flows from the proposed PMS project. Keep in mind that, you should use only incremental revenues and cost saving from the proposed project, not all forecasted sales revenue and labor cost. You should also include annual recurring costs from this project. The Jones' Hotels uses straight-line depreciation method for depreciating fixed assets, and no salvage value is expected from the disposition of the PMS at the end of its economic life of 10-years. Company's average tax rate is 21%. Use the following table to calculate annual net incomes and annual net cash flows from the proposed PMS project. Year (=) EBITDA (-) Depreciation All figures are in $US Incremental Project Revenue 1 (-) Annual Recurring Costs (+) Labor Cost Savings N 2 3 4 5 6 344,652.00 351,545.04 358,575.94 365,747.46 373,062.41 380,523.66 388,134.13 395,896.81 403,814.75 20,679.12 21,092.70 21,514.56 21,944.85 22,383.74 22,831.42 23,288.05 23,753.81 24,228.88 106678 106678 106678 106678 106678 106678 106678 106678 106678 258,653.12 265,959.74 273,412.50 281,014.31 288,768.15 296,677.08 304,744.18 312,972.62 321,365.63 7 8 9 10 4 Using the different investment decision criteria listed in Section 3, provide your decision for project approval or rejection based on each criteria. Use the templates below to complete this requirement. All calculations must be completed in Excel. To calculate NPV and IRR, use the Excel's NPV and IRR functions (i.e. =NPV(,) and =IRR(...). Please remember that Jones' Hotels uses WACC to discount future cash flows to present. 1. Determine the Accounting Rate of Return Average annual income = Average investment = Accounting rate of return = 2. Determine the Payback Period Year Annual NE Ca Cumulative Cash Flows 3. Determine the Discounted Payback Period Year Annual Net Discounted Cas ws Cash Flows Cumulative Cash Flows Flows 1 1 2 2. 3 3 4 5 6 4 5 6 7 7 8 8 9 9 10 10 Payback period: Years Payback period: Years 4., 5. and 6. Determine the NPV, IRR and Pl of the Project Year Annual Net Cash Flows 0 1 2 m + LDN 0009 10 NPV IRR PI In general all decision criteria produce the same final decision for project approval or rejection. However, in some cases, different decision criteria may diagree on the project approval. Based on your analysis in requirement 4 above, what is your recommendation for project approval? Should Jones' accept this project or not? Please explain your reasoning. 3 Estimate the annual net income and annual net cash flows from the proposed PMS project. Keep in mind that, you should use only incremental revenues and cost saving from the proposed project, not all forecasted sales revenue and labor cost. You should also include annual recurring costs from this project. The Jones' Hotels uses straight-line depreciation method for depreciating fixed assets, and no salvage value is expected from the disposition of the PMS at the end of its economic life of 10-years. Company's average tax rate is 21%. Use the following table to calculate annual net incomes and annual net cash flows from the proposed PMS project. Year (=) EBITDA (-) Depreciation All figures are in $US Incremental Project Revenue 1 (-) Annual Recurring Costs (+) Labor Cost Savings N 2 3 4 5 6 344,652.00 351,545.04 358,575.94 365,747.46 373,062.41 380,523.66 388,134.13 395,896.81 403,814.75 20,679.12 21,092.70 21,514.56 21,944.85 22,383.74 22,831.42 23,288.05 23,753.81 24,228.88 106678 106678 106678 106678 106678 106678 106678 106678 106678 258,653.12 265,959.74 273,412.50 281,014.31 288,768.15 296,677.08 304,744.18 312,972.62 321,365.63 7 8 9 10 4 Using the different investment decision criteria listed in Section 3, provide your decision for project approval or rejection based on each criteria. Use the templates below to complete this requirement. All calculations must be completed in Excel. To calculate NPV and IRR, use the Excel's NPV and IRR functions (i.e. =NPV(,) and =IRR(...). Please remember that Jones' Hotels uses WACC to discount future cash flows to present. 1. Determine the Accounting Rate of Return Average annual income = Average investment = Accounting rate of return = 2. Determine the Payback Period Year Annual NE Ca Cumulative Cash Flows 3. Determine the Discounted Payback Period Year Annual Net Discounted Cas ws Cash Flows Cumulative Cash Flows Flows 1 1 2 2. 3 3 4 5 6 4 5 6 7 7 8 8 9 9 10 10 Payback period: Years Payback period: Years 4., 5. and 6. Determine the NPV, IRR and Pl of the Project Year Annual Net Cash Flows 0 1 2 m + LDN 0009 10 NPV IRR PI In general all decision criteria produce the same final decision for project approval or rejection. However, in some cases, different decision criteria may diagree on the project approval. Based on your analysis in requirement 4 above, what is your recommendation for project approval? Should Jones' accept this project or not? Please explain your reasoning