For your Chapter 24 Excel Simulation, you will need to input the present value of an annuity of 1 formula in cell (C28) and the present value of 1 in cell (D28) and the PV function in (D32). Here are the formulas you will need for each of these: C28 =(1/816)*(1-(1/(1+B16C3)) D28 =1/(1+B16C3 D32 --PV(B16,C3,D18,C4) All answers must be entered as a formula. Click OK to begin. OK A1 fx Laurman, Inc. is considering the following project: B D E $ 8 2,750,000 1,600,000 1,150,000 9 $ A 1 Laurman, Inc. is considering the following project: 2 Required investment in equipment $ 2,205,000 3 Project life 7 4 Salvage value 225,000 5 6 The project would provide net operating income each year as follows: 7 Sales Variable expenses Contribution margin 10 Fixed expenses: 11 Salaries, rent and other fixed out-of pocket costs 520,000 12 Depreciation 350,000 13 Total fixed expenses 14 Net operating income 15 16 Company discount rate 18% 17 18 1. Compute the annual net cash inflow from the project. 19 20 2. Complete the table to compute the net present value of the investment. 21 22 Year(s) 23 Now 1-7 870,000 280,000 A1 fx Laurman, Inc. is considering the following project: B D E 7 18 1. Compute the annual net cash inflow from the project. 19 20 2. Complete the table to compute the net present value of the investment. 21 22 Year(s) 23 Now 1-7 24 Initial investment 25 Annual cost savings 26 Salvage value of the new machine 27 Total cash flows 28 Discount factor 1.000 29 Present value of the cash flows 30 Net present value 31 32 Use Excel's PV function to compute the present value of the future cash flows 33 Deduct the cost of the investment 34 Net present value 35 36 3. Use Excel's RATE function to compute the project's internal rate of return 37 38 4. Compute the project's payback period. 39 40 5. Compute the project's simple rate of return. years