(please answer all the questions. Answer should be hand written on paper and plz do not use excel for numaricals)

(please answer as soon as possible need urgently)

(Sorry there are four questions in paper I can not separate them because they are linked. so do not reject it. if you answer me correctly I give you 3 others question)

Instructions: Carefully read the information below and answer questions which are highlighted in bold letters. Attempt all the questions. Company ABC is Manufacturer of footballs and is considered among top five market capitalized firms of Pakistan. The company is considering expanding its business operations in another product line by producing wooden Bats. In order to analyze the feasibility of this project the company needs the help of Investment analyst to evaluate this proposal. For this purpose the company has shared following information. This project requires an initial investment of Rs.5000000 in equipment and it will be depreciated to zero on Straight line basis over 5 years. This system will generate 80,000 units each year which will produce revenues of Rs. 5400000 each year for next 5 years. However the variable cost charged to this project is estimated as Rs. 30 per unit and fixed cost is expected to be Rs. 120000 per year. The relevant Tax Rate is 37%. Calculate the Operating Cash Flows for this company. This project will require an additional investment of Rs.75000 in Networking Capital so that company can efficiently run its daily operations. You are also supposed to calculate projected cash flows for this company. After calculating these estimated cash flows what do you think; should the company proceed for this new product if the required rate of return of this company is 16%?Being an investment analyst you are also supposed to calculate the profitability index and payback period for this project. It will help the management to check how long it will take to recover their initial cost and to how much efficiently they are utilizing their resources to create wealth for the owners of company