The situation: The Poster Company is at full capacity and has decided to expand their production facilities. They currently print and sell 2,000 posters annually Demand is forecasted to be 2,500 posters annually for the next 4 years. The cost of the new equipment is QAR100,000 for a new large format press that will double current production. The new press has a useful life of 10 years and salvage value of QAR3,000. There will be additional fixed manufacturing costs of QAR25,000, excluding depreciation and fixed Marketing costs of QAR20,000. Current Operations: Selling price Variable costs: Manufacturing Marketing Fixed costs QAR / Unit 200 9 1 Manufacturing 4.50 Other 2.50 The Company has a minimum rate of return of 14% all capital investments. Required: 1. Using Excel and showing your calculations, calculate the effect of the new press on operating income for the next four. (3 marks) 2. Using Excel and showing your calculations, calculate the payback period. for the equipment. (2 marks) 3. Using Excel and showing your calculations, calculate the NPV for the equipment. (2 marks) 4. Using Excel and showing your calculations, calculate the IRR for the equipment. (2 marks) 5. Using Excel and showing your calculations, calculate the MIRR for the equipment. (2 marks) 6. What non-financial factors or questions about the impact of the new machine on the Poster Company does it need to keep in mind before purchasing the equipment? Write in your own words. In a separate sheet in Excel or in a Word document. If you use any external sources they must be cited using APA. (5 marks) 7. Write brief statement saying if you support the Poster Company purchasing the new Press and explain why. (100 to 200 words) (4marks)