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show with formulas please & Formatting Table Styles Styles Clipboard Font 028 4 D E 2.750.000 1.600.000 1.150.000 $ B 1 Laurman, Inc. is considering

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& Formatting Table Styles Styles Clipboard Font 028 4 D E 2.750.000 1.600.000 1.150.000 $ B 1 Laurman, Inc. is considering the following project: 2 Required investment in equipment $ 2.205.000 3 Project life 7 4 Salvage value 225.000 5 The project would provide net operating income each year as follows: 7 Sales 8 Variable expenses 9 Contribution margin 10 Fixed expenses: 11 Salaries, rent and other fixed out of pocket costs $ $20.000 12 Depreciation 350/000 13 Total fixed expenses 14 Net operating income 15 16 Company discount rate 189 17 18 1. Compute the annual net cash inflow from the project. 19 20 2. Complete the table to compute the net present value of the investment 21 22 Years 23 Now 12 870,000 280,000 630XXO 2 Sheet1 READY + 100% C42 X B D E 225,000.00 225.000.00 20 2. Complete the table to compute the net present value of the investment. 21 22 Year(s) 23 Now 1-7 24 Initial investment $ (2.205.000.00) 25 Annual cost savings $ 630,000.00 26 Salvage value of the new machine 27 Total cash flows $ (2.205,000.00 $ 630,000.00 $ 28 Discount factor 1.000 29 Present value of the cash flows $ (2.205.000.00) 30 Net present value 31 32 Use Excel's PV function to compute the present value of the future cash flows 33 Deduct the cost of the investment 34 Net present value 35 36 3. Use Excel's RATE function to compute the project's internal rate of retum 37 38 4. Compute the project's payback period. 39 40 5. Compute the project's simple rate of return. 41 years 42 43 Sheet1 READY 90%

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