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: Initial Investment Working Capital Required Yearly Depreciation Enterprise Value at End of 8 years Annual Net Cash Inflows Required Rate of Return Barbershop Clothing Line $ 100,000 $ 32,000 $ 50.000 $ 20,000 $ 12,500 $ 4.000 $ 100,000 $ 75.000 $ 25,000 $ 16,000 10% 15% What is the payback period for each chain? (1 point) What is the Net Present Value of each chain? (9 points) What is the Project Profitability Index of each chain? (1 point) What is each chain's simple rate of return? (1 points) Upload your completed Excel file with the answers to the Capital Budgeting Questions. 1 Exam Question 9 Barbershop Clothing Line 3 met $ 100,000 $ 32,000 4 Working Capital Required $ 50,000 $ 20,000 5 Yeauty Depreciation $ 12.500 5 4,000 6 Feprise Vset End of 8 years $100.000 $ 75.000 7 Anal Net Cach Laws $ 25,000 $ 16,000 * Required Rate of Return 106 159 Barbershop 10 Chain 11 Payback Period 12 Discount Factor Herel 13 Discount Factor Here 141 of Cathindows 15 PV of Cash Outflows 16 Pre Value Project Profitability Index Simple Bar of Return 19 1 2 14 5 6 17 21 Payback Perved 12 Factor veel Clothing line 24 of Cashows 25 p of Cashoulos 26 Prevent Value 2 Sample Rate of Return