The same gym equipment manufacturer has another opportunity presented to expand their current factory space to increase production and ultimately be able to reach new markets with their expanded manufacturing capacity. The company has determined the following information and assumptions for this new expansion idea: 1) The capital investment for this project will cost the company $485,000. Depreciation will be calculated over a 5 year life with no salvage value. 2) The projected annual net income for each of the five years are as follows: Year 1: Year 2: Year 3: Year 4: Year 5: Total 15,000 19,000 25,000 50,000 60,000 169,000 Instructions: Using the template below, a) compute the annual rate of return. b) prepare a table of the net annual cash flow and cumulative net cash flow. c) compute the payback period. d) compute the NPV using the determined 13% discount rate. Should the proposable be accepted using this discount rate? e) compare the results from Project 1 to determine which project is more appealing. Compare results from Project 2 above to those of Project 1 by marking an "X" in the box of the Project that is more appealing for each item below. Note: for the NPV comparison, use the results from Project 1 using the 13% discount rate, letter (c) Annual Rate of Return Net Present Value Cash Payback Project 1 Project 2 1 1 1 Based on the above, which project should the company select? Enter Project 1 or 2