Schultz Inc. is deciding to automate either its Molding department or its Finishing department. Funds are only available for one automation. You must decide which department will be automated. The original cost, net cash inflows, and hurdle rates are shown below for each project. Calculate the payback period, internal rate of return, and net present value for each project. The IRR is an interest rate. Your answer should be presented with two decimal places in this format x.xx%. Then decide which department you would choose to automate based on this information. Explain your answer in the explanation box for the department you would automate. Calculations and explanations can be given on this worksheet. Formulas must be used in the answer boxes for the payback period, IRR, and NPV to receive credit. Excel formulas are perfectly acceptable. Hurdle Rate: Original Cost: Net Cash Inflows: Molding 7% (925,000) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Payback period: 372,000 340,000 227,000 209,000 199,000 159,000 Internal Rate of Return: Net Present Value: Explanation textbox: Would you choose to automate the Molding department? Why? Hurdle Rate: Original Cost: Net Cash Inflows: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Finishing 7% (1,900,000) 365,000 475,000 375,000 275,000 329,000 429,000 329,000 Year 8 Payback period: 279,000 Internal Rate of Return: Net Present Value: Explanation textbox: Would you choose to automate the Finishing department? Why