Please show how you got answers in Excel

1. What is the payback period of the project? If the cut-off payback period is 3 years, should we accept or reject the project? Why?

2. What is the profitability index of the project? Should the project be accepted? Why?

3. What is the internal rate of return (IRR) of the project? Should the project be accepted? Why?

4. What is the net present value (NPV) of the project? Should the project be accepted? Why?

($200,0o0) ($25,00a) $260,000) Increase in accounts payable $ 200,000 $200,000 200,000 200,000 228,000 800(28,000) 44,000 63,200 480 (16,800) 26,400 37,920 $79,68D $ 91,200 $ 62,40054,720 Taxes on operating income After-tax operating income Terminal Year Cash Flows Changes in net working capital Total termination cash flow 260,000 $62,400 Required return (used as the discount ra 10% Present value of cash infows Present value of cash outflows Internal rate of return (IR