please solve and show work

FIN325 1. Calculate the Capital Decision Criteria below. Year Cash Flow 0 -$125,000 Curn Payback Net Income $2,500 1 $40,000 2 $55,000 $6,500 3 $45,000 $6.250 $11,000 $2.500 5 $5,000 $1,500 Avg Net Income Accept V/N/ 2 $17.500 Avg Book Value ANSWER Required Return 20% NPV Required AAR 25% 20% IRR Payback Period 25% Avg Acct Return (AAR) Profitability Index