Need help entering the answers as formulas! :)

1. Determine the payback period for an investment. 2. Evaluate the acceptability of an investment project using the net present value method 3. Evaluate the acceptability of an investment project using the internal rate of return method. 4. Compute the simple rate of return for an investment. 1 Laurman, Inc. is considering the following project: 2Required investment in equipment 3 Proiect life 4 Salvage value 2,205,000 225,000 6 The project would provide net operating income each year as follows 7 Sales 8Variable expense:s 9 Contribution margin 10 Fixed expenses: 11Salaries, rent and other fixed out-of pocket costs 12Depreciation 13 Total fixed expenses 14Net operating income 15 16 Company discount rate 2,750,000 1,150,000 520,000 350 870 18% 18 1. Compute the annual net cash inflow from the projedct 19 20 2. Complete the ta 21 ble to compute the net present value of the invest ment Year(s) 23 24 Initial investment 25 Annual cost savings 26 Salvage value of the new machine 27 Total cash flow:s 28 Discount factor 29 Present value of the cash flows 30 Net present value 31 32 Use Excel's PV function to compute the present value of the future cash flows 33 Deduct the cost of the investment 34 Net present value Now 7 1.000 36 3. Use Excel's RATE function to compute the project's internal rate of return 37 38 4. Compute the project's payback period. 39 405. Compute the project's simple rate of returr 41 42 years