1. Formulate demand forecasting equation using High-low demand foresting method by considering the following observations from 10 years data. Average House hold Income(X) Demand(Y) Highest observation 24 180 Lowest observation 16 120 2. A company has an investment costing $500 with the following expected net cash flows after tax and before depreciation. 12 3 4 5 Net Cash Flows 12 13 15 16 18 Required: Using 8% cost of capital determine the following and decide whether the Year project is accept or not. A. Payback period (PBP), B). Net Present value(NPV) C). Profitability Index