Question: ONLY NEED HELP ON HIGHLIGHTED QUESTIONS 1. What is the calculated payback period for this proposed investment? 5.89 1.b. If the required payback period for

ONLY NEED HELP ON HIGHLIGHTED QUESTIONS 1. What is the calculated

ONLY NEED HELP ON HIGHLIGHTED QUESTIONS 1. What is the calculated payback period for this proposed investment? 5.89 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 return for this proposed investment? 8.50% 3.a. Explain why the cost of equity for a proposed project like this would be higher than the cost of debt. Opportunity costs of using the firms capital 4. Calculate the net present value of this investment using the =NPV function in Excel using the weighted cost of capital that you calculated in 3.b. 4b. Positive wealth impact 5. Calculate the Internal Rate of Return on this investment using the =IRR function in Excel. 5a. IRR should be equal to 7.7%

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