Laurman, inc is considering the following project. \begin{tabular}{l|r|} \hline Required imvestment in equipment & $2,205,000 \\ Project life & 7 \\ Salvage value & 225,000 \end{tabular} The project would provide net operating income cach year as follow: \begin{tabular}{|c|c|c|} \hline Sales & & $2,750,000 \\ \hline Variable expenses. & & 1,600,000 \\ \hline Contributoon margin & & $1,150,000 \\ \hline \multicolumn{3}{|l|}{ Fined expenses: } \\ \hline Salaries, rent and other fixed oat-of pocket costs & $20,000 & \\ \hline Depeeciation & 150,000 & \\ \hline Total fired expenses & & 870,000 \\ \hline Net operating income & & 5280,000 \\ \hline \end{tabular} Company discount rate 18N Required: and will display in parentheses.) 1. Compute the annual net cath inflow from the project. $630,000 2. Complete the table to compute the net present walue of the imestment. Initial imestment Annual cost saving Salvage value of the new machine Total cash flows Discount factor Piesent value of the cast flows Net present value Use Cucel's PV function to compute the present value of the future cash flown Deduct the cost of the investment firet present value 3. Use frcel's Rut function to compute the project's internal rute af return 4. Compute the project's pirpenck period. 15 wart 3. Compule the propect's simple rate of return