What is the payback period?

If possible answer q#1,2,3,4,5 as well

Thank you!

1) Period of the Equipmentyears 2) New equipment cost 3) Equipment ship & install cost 4) Related start up cost 5) Equip. Salvage Value 6) Sales for first year 1 ESTIMATING Initial outlay (Cash Flow CFO T: 1) Equipment cost 2) Shipping and Install cost 3) Start up expenses Total Basis Cost 1+2+3 Total Initial Outlay (a) Develop proforma Proiect Income Statement using Excel Spreadsheet (b) Compute Net Proiect Cash flows, NPV, IRR and PayBack Period c Develop Problem-Solvinqand Critical Thinking Skills 515.04m (200,000) (35,000) (5,000) 15,000 200,000 CFO (240.000) e Value Before Tax 1- 40 ooo IRR = 7) Sales increase per year 8) Operating cost: (60 Percent of Sales) 9) Depreciation (Straight LineVYR 10) Corporate Marginal Tax Rate 11 CostofCapital (WACC Revenue Operating Cost Depreciation EBIT Taxes Net Income Add back Depreciation 40 Total Operating Cash Flow 1) Salva e value after tax Total Pro ect Net Cash Flows NPV = Salva CFI 200,000 (120,000) 20,000 15,800 60,000 75.800 75 800 CF2 210,000 (126,000) 24,000 18,960 60,000 78.960 78 960 -60% CF3 220,500 $ (132,300) $ _ oom 28,200 22,278 60,000 82.278 82 278 Payback: 5% 120,000) ,000) 21% 10% CF4 231,525 (138,915) 32,610 16-848) 25 762 60 ooo 85.762 11-850 11 850 97 612 Would you accept the project based on NPV, IRR? Would you accept the project based on Payback rule if project cut-off is 3 years? How would you explain to your CEO what NPV means? What are advantages and disadvantages of using only Payback method? What are advantages and disadvantages of using NPV versus IRR? Explain the difference between independent projects and mutually exclusive projects When you are confronted with Mutually Exclusive Projects and have coficts with NPV and IRR results, which criterion would you use (NPV or IRR) and why?