Project A The initial investment for the project is $250,000, and the project will continue for seven years, and the following Cash flows will be generated. The cash flows are reported below. The firm also reported the following information. Assume that the company generates a revenue of $300,000 for the first year, and it is subject to grow at a rate of 5 percent for the investment period. The first-year expense is $200,000 and is subject to increase by 7 percent every year. This company uses straight-line depreciation, and the useful life for the Investment is eight years. The company is also subject to a 40% tax rate. Year Cash Flows 1 41,000 2 48,000 3 63,000 4 79,000 5 88,000 6 64,000 7 41,000 Project B Initial Investment for the project is $750,000, and Investment will generate equal cash flows of $120,000. These cash flows will last for ten years. Assume that the company generates a revenue of $400,000 for the first year, and it is subject to grow at a rate of 7 percent for the investment period. The first-year expense is $150,000 and is subject to increase by 10 percent every year. This company uses straight-line depreciation, and the useful life for the Investment is ten years. The company is also subject to a 40% tax rate. Project C The initial investment for the project is $350, 000 and Investment has the following cash flows that will continue for seven years. Assume that the company generates a revenue of $400,000 for the first year, and it is subject to grow at a rate of 5 percent for the investment period. The first-year expense is $150,000 and is subject to increase by 15 percent every year. This company uses straight-line depreciation, and the useful life for the Investment is ten years. The company is also subject to a 40% tax rate. Year Cash Flows 1 $ 49,200 2 $ 38,400 3 $ 81,900 4 $ 55,300 5 $ 123,200 6 $ 41,600 7 $ 69,700 Instructions: a) Fill the table below calculating the NPV for different discount rates for all the projects Discount Rate Project A Project B Project C 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% b) Fill the table below for calculating the Profitability index using the required returns Discount Rate Project A Project B Project C 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% c) Calculate the Average accounting returns for each of the projects. d) Calculate the payback period for each project and comment if the project will be accepted if the preset cutoff points are 3, 4, and 5 years. Show your calculations e) Calculate the discounted payback period for all projects using the discount rates reported in the table below. Discount Rate Project A Project B Project C 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15%