istructions: four Instructor will provide the numerical data of the required investment, annual cash flows, annual net income, average book value, and cost of capital to students. Use that information to calculate the NPV, payback, IRR, and ARR by filling in the highlighted cells. Additionally, use the IRR Work sheet to calculate the IRR using the Excel =IRR formula. Air Scrubbers Air Scrubbers IRR Worksheet Furnace Fuel Change Period Cash Flow wet Present Value using the Annuity Table to determine PV of cash flow why - Initial Cost + (Net Annual Cash Flow * Factor) Amount Factor Present Value Net Present Value using the Annuity Table to determine PV of cash flow NPY = Initial Cost + (Net Annual Cash Flow * Factor) Amount Initial investment Initial investment Present Value of Annual net cash flow for 15 years PV of Annual net cash flow for 15 years Net present value OR Net present value OR Net Present Value Using Excel to determine PV cash flow Net Present Value Using Excel to determine PV cash flow NPV = Initial Cost + Py of Cash Flow Present Value NPV = Initial Cost + PY of Cash Flows Present Value Initial investment Initial investment of Annual net cash =pv( rate,value1,[value2]) Net present value Annual net cash flow for 15 years -PV(rate, value1, [value2]] Net present value Payback Period = Initial Investment / Net Annual Cash Flow Payback Period = Initial Investment / Net Annual Cash Flow Internal Rate of Return Jsing Annuity Table Internal Rate of Return Using Annuity Table Furnance Fuel Chang Using Excel =IRR(M6:M21) use the IRR worksheet IRR Worksheet Using Excel =IRR(M26:M41) use the IRR worksheet Cash Flow verage Rate of Return = Ave Net Income / Ave Book Value of investment verage Rate of Return = Ave Net Income / Ave Book Value of investmentWeek 6 Assignment Data Air Scrubbers Furnace Fuel Change Initial Investment $ 1,950,000 $ 1,885,000 Annual Net Cash Flows 345,000 365,000 Annual Net Income 145,000 $ 180,000 Project Life 15 years 15 years Average Book Value $ 975,000 $ 942,500 Cost of Capital 6% 6%