please show calculations and formulas

Project 2: The sarne bicycle company has another opportunity presented to expand their current plant to increase production and ultimately be able to teach new markets with their expanded manufacturing capacity. The company has determined the following information and assumptions for this new expansion idca: 1) The capital investment for this project will cost the company $500,000. Depreciation will be calculated over a 5 year life with no salvage value. 2) The projected annual net income for each of the five years are as follows: Year 1: Year 2 Year 3: Year 4 Year 5: Total 45,000 50,000 58,000 61,000 63,000 277,000 Instructions: Using the template below, a) compute the annual rate of return. b) prepare a table of the net annucal cash flow and cumulative net cash flow. compute the payback period. d) compute the NPV using the determined 15% discount rate Sboald the proposable be acceperd sting this discount rate? compare the results from Part 1 to determine which project is more appealing, M 0 P Q R S T Compute the annual rate of retum, Annual rate of return Avercage annual net earning Annual rate of return 55,400 1108.00% 2 b) Prepare a table of the net annual cash flow and cumulative net cash flow. (Hint: Don't forget about depreciation. See M13, Discussion Problem 1) Year 1 2 Net Annual Cumulative Cash Flow Net Cash Flow 145,000 150,000 158,000 161,000 163,000 3 + c) Compute the payback period. (Again, refer to M13 Discussion Problem 11) 2 Compute the NPV using the discount rate of 15% and the NPV Excel formula. You should list R S T Compute the NPV using the discount rate of 15% and the NPV Excel formula. You should list out your inputs in the provided spaces. Present value of cash inflows 2 Present value of cash outflows: Net present value Lithus proposal acceptable sting this discount nate? Respond Yes or No. yes 2 + Compare results from Project 2 above to those of Project 1 by marking an "X"in the box of the Project that is more appealing for each item below. Note: for the NPV comparison, use the results from Project 1 using the 15% discount rate, letter (c) Annual Rate of Return Cash Payback Net Present Value Project 1 Project 2