please solve and show work to get answers, thanks.

Name: Chapter 8-In Class SHOW WORK FIN325 1. Calculate the Capital Decision Criteria below. Year Cash Flow 0 $125.000 Cum Payback Net Income 1 $40,000 $2,500 2 $55,000 $6,500 3 $45,000 $6,250 4 $11,000 $2,500 5 $5,000 $1,500 Avg Net Income Accept Y/N/ $17,500 Avg Book Value Required Return ANSWER 20% NPV Required AAR = 25% 20% IRR Payback Period 25% Avg Acc.t Retum (AAR) Profitability Index Page 11