Assignment #5 (Set the entire homework up in an Excel spreadsheet and answer all the questions clearly marked in your spreadsheet. Submit your spreadsheet clearly identifiable by your name.) You are considering purchasing a machine (use your imagination) that will initially cost $345,000.00. The machine is expected to last 8 years, and you project that you can sell the worn out machine at the end of 8 years for $64,000.00 Annual operating cash inflows and outflows are projected as follows, and are assumed to occur at the end of each year: Both of years 1 and 2 , cash inflow $74,000.00, cash outflow expenses $20,000.00; both of years 3 and 4 , cash inflow $81,000.00, cash outflow expenses $26,000.00. In year 5 you have to shut down and rebuild the machine so cash inflows are only $41,000.00 and cash outflows are $44,000.00. In year 6 cash inflow is $65,000.00, and cash outflow expenses are $36,000.00. Finally, in both year's 7 and 8 cash operating inflow is $84,000.00 and cash operating expenses are $34,000.00. 1. What is the calculated payback period for this proposed investment? 1.b. If the required payback period for your firm is 6 years, would you purchase this machine? Why or why not? 2. What is the calculated simple rate of retum for this proposed investment? 2.b. If the required simple rate of return for your firm is 4%, would you purchase this machine