Laurman, Inc. is considering the following project: Required investment in equipment $2,205,000 Project life 7 Salvage value 225,000 The project would provide net operating income each year as follows: Sales $2,750,000 Variable expenses 1,600,000 Contribution margin $1,150,000 Fixed expenses: Salaries, rent and other fixed out-of pocket costs $520,000 Depreciation 350,000 Total fixed expenses 870,000 Net operating income $280,000 Company discount rate 18% Required: (Use cells A4 to C18 from the given information to complete this question. Negative amounts or amounts to be deducted should be input and displayed as negative values.) 1. Compute the annual net cash inflow from the project. 2. Complete the table to compute the net present value of the investment. Year(s) Now 1 through 7 7 Initial investment Annual cost savings Salvage value of the new machine Total cash flows Discount factor 1.00000 Present value of the cash flows Net present value Use Excel's PV function to compute the present value of the future cash flows Deduct the cost of the investment Net present value 3. Use Excel's RATE function to compute the project's internal rate of return 4. Compute the project's payback period. years 5. Compute the project's simple rate of return