PLEASE THE WORKINGS

Suppose that a company like Calm Ltd Products and Chemicals is considering building a new lights-out facility and has gathered the following information: Purchase price K600,000 Residual value K100,000 Desired payback period 3 years Minimum rate of return 15% The cash flow estimates are as follows: Year Cash inflows Cash Outflows Net Income Net Cash Projected $ 500,000 $260,000 $240,000 $115,000 2 450,000 240,000 210,000 85,000 3 400,000 220,000 180,000 55,000 4 350,000 200,000 150,000 25,000 Totals $1,700,000 $920,000 $780,000 $280,000 1 Required a. Analyze the company's investment in the new facility using 1. The Net present value method, ii. The Payback period method, and iii. The Accounting rate-of-return method. (15 marks) b. Summarize your findings from requirement a, and recommend a course of action