Your manager has asked you to prepare a report on how best to use the capital budget of $3.55 million. This may include investing in one of the available locations, or it may not. If it is possible under the $3,550,000 budget, you may recommend investing in more than one location. In an Excel file: Calculate the following for each location: Cash payback period Net present value Internal rate of return Profitability index Average rate of return Use a discount rate of 12% (Best Bean's minimum rate of return) where necessary. Show all answers to two decimal places (dollars and percentages). Note some helpful formulas in the "Excel TVM formulas" tab. Prepare a memo summarizing your findings and recommendations.

2,346,000 Location A Initial investment Residual value Annual depreciation 234,600 Projected income: Revenues Expenses * Net income 2020 769,900 586,100 183,800 2021 769,900 586,100 183,800 2022 769,900 586,100 183,800 2023 769,900 586,100 183,800 2024 769,900 586,100 183,800 2025 769,900 586,100 183,800 2026 769,900 586,100 183,800 2027 769,900 586,100 183,800 2028 769,900 586,100 183,800 2029 769,900 586,100 183,800 SUU Location B Initial investment Residual value Annual depreciation 1,736,000 200,000 153,600 2022 2023 2024 Projected income: Revenues Expenses * Net income 2020 666,100 531,400 134,700 2021 666,100 531,400 134,700 666,100 531,400 134,700 666,100 531,400 134,700 666,100 531,400 134,700 2025 666,100 531,400 134,700 2026 666,100 531,400 134,700 2027 666,100 531,400 134,700 2028 666,100 531,400 134,700 2029 666,100 531,400 134,700 1,536,000 Location C Initial investment Residual value Annual depreciation 153,600 Projected income: Revenues Expenses * Net income 2020 576,400 445,900 130,500 2021 576,400 445,900 130,500 2022 566,400 445,900 120,500 2023 566,400 445,900 120,500 2024 556,400 445,900 110,500 2025 556,400 445,900 110,500 2026 546,400 445,900 100,500 2027 546,400 445,900 100,500 2028 536,400 445,900 90,500 2029 536,400 445,900 90,500 Location D Initial investment Residual value Annual depreciation 1,966,000 300,000 208,250 2022 2024 Projected income: Revenues Expenses * Net income 2020 838,100 671,900 166,200 2021 838,100 671,900 166,200 838,100 671,900 166,200 2023 838,100 671,900 166,200 838,100 671,900 166,200 2025 838,100 671,900 166,200 2026 838,100 671,900 166,200 2027 838,100 671,900 166,200 * - Expense figures shown include depreciation. With the exception of depreciation, all expenses are assumed paid in cash