I need help understanding how to calculate the items highlighted in yellow 3. Arrive at net cash flows for years 1 thru 5. Use the information given in step 2 above for incremental profit contributions for years 2 thru 5. 4, Compute the following: Payback Period; Internal Rate of Return (IRR); ROI; and Profitability Index. 5. For the discount rate of 7.5%, compute NPV using two different methods: (1) Using the Excel formula, and (2) Using individual period discount factors: Arrive at discount factors for each year for years 0 through 5; Multiply the net cash flow for the year with the discount factor; and add the resulting values for years 0 through 5 to arrive at NPV. Return on Investment Calculations Fiscal Year Costs Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Advertisement Costs Banner Ads - Jolly-Homer 500,000 $250,000 $270,000 $291,600 $314,928 $340,122 Banner Ads - Jolly-Mower $500,000 $250,000 $260,000 $270,400 $281,216 $292,465 Banner Ads - Jolly-Pooler 500,000 250,000 $255,000 $260,100 265,302 270,608 Web Ads - Jolly-Homer $1,000,000 $250,000 $270,000 $291,600 $314,928 340,122 Web Ads - Jolly-Mower $1,000,000 $250,000 $260,000 $270,400 $281,216 292,465 Web Ads - Jolly-Pooler $1,000,000 $250,000 $255,000 $260,100 265,302 270,608 Public Relations Costs Press Releases $25,000 $25,000 $25,750 $26,523 $27,318 $28,138 Webinars - Jolly-Homer $75,000 $40,000 $43,200 $46,656 $50,388 $54,420 Webinars - Jolly-Mower $75,000 $40,000 $41,600 $43,264 $44,995 $46,794 Webinars - Jolly-Pooler $75,000 $40,000 $40,800 $41,616 ;42,448 $43,297 Content Marketing Costs Sponsored Content $50,000 $20,000 $20,600 $21,218 $21,855 $22,510 Landing Page $100,000 $20,000 $20,600 $21,218 ;21,855 $22,510 E-Books/White Papers $50,000 $20,000 $20,600 $21,218 $21,855 $22,510 Social Media Marketing Costs Social Media Mktg - Jolly-Homer $1,500,000 $400,000 $432,000 $466,560 $503,885 544,196 Social Media Mktg - Jolly-Mower $1,500,000 $400,000 $416,000 $432,640 $449,946 $467,943 Social Media Mktg - Jolly-Pooler $1,500,000 $400,000 $408,000 $416,160 4.483 $432,973 Online Marketing Cost Blogs $100,000 $50,000 $51,500 $53,045 $54,636 $56,275 Mobile App $200,000 $50,000 $51,500 $53,045 $54,636 $56,275 Mobile Alerts $300,000 $50,000 $51,500 $53,045 $54,636 $56,275 Email newsletter $50,000 $50,000 $51,500 $53,045 $54,636 $56,275 Web Costs Redesign of website 800,000 $100,000 $103,000 $106,090 $109,273 $112,55: Search Engine Optimization (SEO $400,000 $100,000 $103,000 $106,090 $109,273 $112,55 Pay per click marketing $1,000,000 $100,000 $103,000 $106,090 $109,273 $112,551 Market Research Costs Jolly Robots Product Surveys $100,000 $50,000 $51,500 $53,045 $54,636 $56,275 Jolly Robots Product Impact Studies $200,000 $50,000 $51,500 $53,045 54,636 $56,275 Sales Campaign Costs Sales Campaign - Jolly-Homer $500,000 $250,000 $270,000 $291,600 $314,928 $340,122 Sales Campaign - Jolly-Mower 500,000 $250,000 $260,000 $270,400 $281,216 292,465 Sales Campaign - Jolly-Pooler 500,000 250,000 255,000 $260,100 $265,302 $270,608 Brand Management Costs Corporate Rebranding - Jolly-Homer $300,000 $100,000 $108,000 $116,640 $125,971 $136,049 Corporate Rebranding - Jolly-Mower 300,000 $100,000 $104,000 $108,160 $112,486 $116,986Corporate Rebranding - Jolly-Pooler $300,000 $100,000 $102,000 $104,040 Total Expenses $106,121 $108,243 $15,000,000 $4,555,000 $4,756,150 $4,968,753 $5,193,579 $5,431,459 Incremental Profit Contributions Year 0 Year 1 Year 2 Year 3 Year 4 From Advertisements Year 5 Banner Ads - Jolly-Homer $250,000 $20,000 $21,600 $23,328 Banner Ads - Jolly-Mower $25,194 $250,000 $10,000 $10,400 $10,816 Banner Ads - Jolly-Pooler $11,249 $250,000 $5,000 $5,100 $5,202 Web Ads - Jolly-Homer $5,306 $250,00 $20,000 $21,600 Web Ads - Jolly-Mower $23,328 $25,194 $250,000 $10,000 $10,400 Web Ads - Jolly-Pooler $10,816 $11,249 $250,000 $5,000 $5,100 $5,202 From Public Relations $5,306 Press Releases $25,000 $750 $773 $796 Webinars - Jolly-Homer $820 $40,000 $3,200 $3,456 Webinars - Jolly-Mower $3,732 $4,031 $40,000 $1,600 $1,664 Webinars - Jolly-Pooler $1,731 $1,800 $40,000 $800 $816 $83 $84 From Content Marketing Sponsored Content $20,000 $600 $618 $637 Landing Page $656 $20,000 $600 $61 $637 E-Books/White Papers $65 $20,000 $600 $618 From Social Media Marketing $637 $656 Social Media Mktg - Jolly-Homer $400,000 $32,000 $34,560 $37,325 Social Media Mktg - Jolly-Mower $40,311 $400,00 $16,000 $16,640 Social Media Mktg - Jolly-Pooler $17,30 $17,998 $400,000 $8,000 $8,160 $8,323 From Online Marketing $8,490 Blogs $50,000 $1,500 $1,545 Mobile App $1,591 $1,639 $50,000 $1,500 $1,545 Mobile Alerts $1,591 $1,639 $50,000 $1,500 $1,545 Email newsletter $1,591 $1,639 $50,000 $1,500 $1,545 From Web $1,591 $1,639 Redesign of website $100,000 $3,000 $3,090 Search Engine Optimization (SEO $3,183 $3,278 $100,000 $3,000 $3,090 Pay per click marketing $3,183 $3,278 $100,000 $3,000 $3,090 $3,183 From Market Research Costs $3,278 Jolly Robots Product Surveys $50,000 $1,500 $1,545 $1,591 Jolly Robots Product Impact Studies $1,639 $50,000 $1,500 $1,545 From Sales Campaign $1,591 $1,639 Sales Campaign - Jolly-Homer $250,000 $20,000 $21,600 $23,328 Sales Campaign - Jolly-Mower $25,194 $250,000 $10,000 $10,400 $10,816 Sales Campaign - Jolly-Pooler $11,249 $250,000 $5,000 $5,100 $5,202 $5,306From Brand Management Corporate Rebranding - Jolly-Homer $100,000 $8,000 $8,640 $9,331 $10,078 Corporate Rebranding - Jolly-Mower $100,000 $4,000 $4,160 $4,326 $4,499 Corporate Rebranding - Jolly-Pooler $100,000 $2,000 $2,040 $2,081 $2,122 Total Incremental Profit Contribution SO $4,555,000 $201 150 $212,603 $224,827 $237,880 Total Expenses (from above) $4,555,000 $4,756,150 $4,968,753 $5,193,579 $5,431,459 Net Annual Cash Flows -$15,000,000 $4,555,000 $4,756,150 $4,968,753 $5,193,579 $5,431,459 Cumulative Cash Flows -$15,000,000 -$10,445,000 -$5,688,850 $720,098 $4,473,482 $9,904,941 Payback Period 3 years ROI Discount Rate 0.075 NPV Note: Use Excel Formula IRR Note: Use Excel Formula Compute NPV using year-by-year discount factors: 0 2 3 4 5 Present Value of $1 1.000000 0.930233 0.865333 0.804961 0.748801 0.696559 Present Value of Net Cash Flow above [$15,000,000) $4,237,209 $4.115.652 $3,999.650 $3,888,955 $3,783,330 NPV for the project $5,024,796 Amount Invested at t=0 $15,000,000 Present Value of Future Cash Flows $3,783,330 Profitability Index 0.25