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: 2 Year 3: 3 Year 4: : Year 5: : Total 15,000 19,000 25,000 50,000 60,000 169,000 Instructions: : Using the template below, a) a) compute the annual rate of return. b) b prepare a table of the net annual cash flow and cumulative net cash flow. c) 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. a) Compute the annual rate of return. 2 b) Prepare a table of the net annual cash flow and cumulative net cash flow. (Hint: Don't forget about depreciation's impact on cash flow. Refer to M10 Excel Example!) Net Annual Cash Flow Cumulative Net Cash Flow Year 2 c) Compute the payback period. (Again, refer to M10 Excel Example!) d) Compute the NPV using the discount rate of 13% and the NPV Excel formula. You should list out your inputs in the provided spaces. Present value of cash inflows