Please show the excel formulas used to get each answer.

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 FILE HOME INSERT Sign In X Calibri 11 Comparison of Capital Budgeting Methods - Excel PAGE LAYOUT FORMULAS DATA REVIEW VIEW AA Alignment Number Conditional Format as Cell Formatting" Table Styles Styles Laurman, Inc. is considering the following project: Paste Cells Clipboard Font Al y B D E 2,205,000 7 225,000 $ 2,750,000 1.600.000 1,150,000 $ 1 Laurman, Inc. is considering the following project: 2 Required investment in equipment $ 3 Project life 4 Salvage value 6 The project would provide net operating income each year as follows: 7 Sales 8 Variable expenses 9 Contribution margin 10 Fixed expenses: Salaries, rent and other fixed out-of pocket costs 12 Depreciation 13 Total fixed expenses 14 Net operating income 15 16 Company discount rate 18% 17 18 1. Compute the annual net cash inflow from the project. 19 20 2. Complete the table to compute the net present value of the investment. 21 11 $ 520,000 350.000 870.000 280.000 21 22 7 Year(s) 23 Now 1-7 24 Initial investment 25 Annual cost savings 26 Salvage value of the new machine 27 Total cash flows 28 Discount factor 1.000 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 35 36 3. Use Excel's RATE function to compute the project's internal rate of retum 37 years 38 4. Compute the project's payback period. 40 5. Compute the project's simple rate of retum. 39 41 42 Sheet1