Question: Continuing the scenario from questions 1 and 2: Utilizing the updated information from question 2, calculate the items below. A) Payback period. B) Profitability index

Continuing the scenario from questions 1 and 2: Utilizing the updated information from question 2, calculate the items below.

A) Payback period.

B) Profitability index (PI).

Please show in excel with formulas and references

Rate Value Proportion WACC
Cost of Equity 5% 1200000 0.666666667 0.033333
Cost of Debt 8% 600000 0.333333333 0.026667
Amount Paid 1800000
WACC 6%
Year Cash Flow
0 $ (350,000.00)
1 $ (10,000.00)
2 $ 45,000.00
3 $ 127,000.00
4 $ 168,000.00
5 $ 145,000.00
IRR 8.18%
NVP $ 28,671.70

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