$(25$ points$)$ The after$-$tax cash flows for a new process are shown below $($all figures are expressed in

$8$ million$).$ Using these figures, calculate the following:

$($a$)$ Payback period $($PBP$)$

$($b$)$ Cumulative cah position $($CCP$)$ and cumulative cash ratio $($CCR$)$

$($c$)$ Rate of return on investment $($ROROI$)$

$($d$)$ Discounted payback period $($DPBP$),$ assuming a $15\%$ discount rate

$($e$)$ Net present value $($NPV$),$ assuming a $15\%$ discount rate

$($f$)$ Discounted cash flow rate of return $($DCFROR$)$

$($g$)$ Is it a profit able process? Explain your answer.

$($Hint: you need to draw the nondiscounted cumulati ve cash flow diagram for this process first. Use

it to answer parts $($a$)-($c$).$ Then, discount the cumulative values to year $0$ and draw the discounted

cumulative cash flow diagram. Use it to answer questions $($d$)-($f$).)$