Question 9 20 pts Ronnie Arthur is a serial entrepreneur from Saginaw, MI, who is trying to decide whether to spend his time and investment capital on his barbershop or on his clothing line. He has decided to engage in some capital budgeting analysis in order to help him make this decision. Ronnie has determined the following predicted costs and benefits of devoting his resources to each business: Barbershop Clothing Line Initial Investment $ 100,000 $ 32,000 Working Capital Required $ 50,000 $ 20,000 Yearly Depreciation $ 12,500 $ 4,000 Enterprise Value at End of 8 years $ 100,000 $ 75,000 Annual Net Cash Inflows $ 25,000 $ 16,000 Required Rate of Return 10% 15% What is the payback period for each chain? (2 points) What is the Net Present Value of each chain? (14 points) What is the Project Profitability Index of each chain? (2 points) What is each chain's simple rate of return? (2 points) Upload your completed Excel file with the answers to the Capital Budgeting Questions. Upload Choose a File Question 9 20 pts Ronnie Arthur is a serial entrepreneur from Saginaw, MI, who is trying to decide whether to spend his time and investment capital on his barbershop or on his clothing line. He has decided to engage in some capital budgeting analysis in order to help him make this decision. Ronnie has determined the following predicted costs and benefits of devoting his resources to each business: Barbershop Clothing Line Initial Investment $ 100,000 $ 32,000 Working Capital Required $ 50,000 $ 20,000 Yearly Depreciation $ 12,500 $ 4,000 Enterprise Value at End of 8 years $ 100,000 $ 75,000 Annual Net Cash Inflows $ 25,000 $ 16,000 Required Rate of Return 10% 15% What is the payback period for each chain? (2 points) What is the Net Present Value of each chain? (14 points) What is the Project Profitability Index of each chain? (2 points) What is each chain's simple rate of return? (2 points) Upload your completed Excel file with the answers to the Capital Budgeting Questions. Upload Choose a File