Laurman, Inc. is considering the following project: Required investment in equipment Project life Salvage value The project would provide net operating income each year as follows: Sales D Variable expenses Contribution margin 2 Fixed expenses: 3 Salaries, rent and other fixed out-of pocket costs 4 Depreciation 5 Total fixed expenses 6 Net operating income 7 8 Company discount rate 19 20 Required: 21 + $2,205,000 7 225,000 $2,750,000 1,600,000 $1,150,000 $520,000 350,000 870,000 $280,000 18% (Use cells A4 to C18 from the given information, as well as B24, and A30 to D46 to complete this question. Negative amounts 22 be input as negative values and will disolav in narentherer 1 2. Complete the table to compute the net present value of the investment. Initial investment Annual cost savings 2 Salvage value of the new machine B Total cash flows 4 Discount factor 5 Present value of the cash flows 6 Net present value 37 38 Use Excel's PV function to compute the present value of the future cash flows 39 Deduct the cost of the investment 40 Net present value 41 42 3. Use Excel's RATE function to compute the project's internal rate of return 43 44 4. Compute the project's payback period. 45 46 5. Compute the project's simple rate of return. . > Graded Worksheet Year(s) Now 1 through 7 7 1.00000 years