The machine is expected to last 6 years, and you project that you can sell the worn out machine at the end of 6 years for $58,000,00 Annual operating cash inflows and outflows are projected as follows, and are assumed to occur at the end of each year: Years 1 and 2, cash inflow $48,000.00, cash outflow expenses $25,000.00; Years 3 and 4 , cash inflow $62,000.00, cash outflow expenses $27,000.00; and years 5 and 6 , cash inflow $63,000.00, cash outflow expenses $31,000.00. 1. What is the calculated payback period for this proposed investment? 1.b. If the required payback period for your firm is 6 years, would you purchase this machine? Why or why not? 2. What is the calculated simple rate of return for this proposed investment? 2.b. If the required simple rate of return for your firm is 7%, would you purchase this machine? 3. Assume your firm can lock in a cost of Debt for this project at 6.5%(.065) annual rate. Also, assume the stockholders in your firm expect a return on equity that is 2 percentage points higher than the cost of debt. 3.a. Explain why the cost of equity for a proposed project like this would be higher than the cost of debt. 3.b. Your firm expects to finance this machine using 40% equity, and 60% debt. Calculate the weighted cost of capital that would be used in for an NPV analysis given these facts. 4. Calculate the net present value of this investment using the =NPV function in Excel using the weighted cost of capital that you calculated in 3.b. 4.b. Assuming the cash flow projections are all correct, and you can "lock in" your weighted cost of capital for the life of the project, would this project have a positive or negative impact on your companies' wealth? 5. Calculate the Internal Rate of Return on this investment using the =IRR function in Excel. 5.b. Calculate the Internal Rate of Return on this investment using the goal seek feature in Excel as described in class. In detail describe the steps you go through to do that here