Capital Budgeting Analysis $($Total: $10$ Marks$)$ A company is considering an investment project with the following details: Initial Investment: $\backslash$$$100,000$ Project Life: $5$ years Annual Net Cash Flows: Year $1$: $\backslash (\backslash$$ $40,000\backslash )$ Year $2$: $\backslash$$$35,000$ Year $3$: $\backslash$$$30,000$ Year $4$: $\backslash$$$25,000$ Year $5$: $\backslash$$$20,000$ Discount Rate $($Hurdle Rate$)$: $10\backslash \%$ Salvage Value: $\backslash$$$0$ Depreciation: The asset is depreciated on a straight$-$line basis over $5$ years. Answer the following parts. In each section, show your calculations manually and explain what your computed result implies for the investment decision. $($a$)$ Payback Period $(2$ Marks$)$ Compute the payback period by adding the annual net cash flows until the cumulative cash flow equals or exceeds the $\backslash (\backslash$$ $100,000\backslash )$ initial investment. Explain what your calculated payback period suggests regarding the project's risk and liquidity. $($b$)$ Accounting Rate of Return $($ARR$)(2$ Marks$)$ Compute the ARR and explain what the resulting ARR indicates about the project's profitability and how it might affect the investment decision. $($c$)$ Net Present Value $($NPV$)(3$ Marks$)$ Calculate the NPV and explain what the NPV result indicates regarding the project's value addition and overall desirability from a capital budgeting perspective. $($d$)$ Internal Rate of Return $($IRR$)(3$ Marks$)$ Using a trial$-$and$-$error method, calculate the NPV at two different discount rates $($for example, at $\backslash (15\backslash \%\backslash )$ and $\backslash (20\backslash \%\backslash )).$ Use these calculations to interpolate an estimate for the IRR, the discount rate that makes NPV equal to zero. Explain how your estimated IRR compares to the required return $(10\backslash \%).$ Discuss what this comparison implies for whether the project should be accepted.