PLEASE ANSWER THE QUESTION IN PLAIN EXCEL FORMAT IN A WAY THAT IS EASILY UNDERSTOOD. THANK YOU.

10 [EXCEL] Average accounting rate of return (ARR): Capitol Corp. management is expecting a project to generate after-tax income of $63,435 in each of the next three years. The average book value of the project's equipment over that period will be $212,500. If the firm's investment decision on any project is based on an ARR of 37.5 percent, should this project be accepted?

11 [EXCEL] Internal rate of return: Refer to Problem 4. What is the IRR that Franklin Mints management can expect on this project? (PROBLEM 4 AND ANSWER BELOW)

Problem 4: Net present value: Management of Franklin Mints, a confectioner, is considering purchasing a new jelly bean-making machine at a cost of $312,500. They project that the cash flows from this investment will be $121,450 for the next seven years. If the appropriate discount rate is 14 percent, what is the NPV for the project?

(PROBLEM 4 SOLVED)

#4
Year	Cash flow	PVF@14%	Present value
0	$-3,12,500	1	$(3,12,500)
1	$1,24,000	0.877	$1,08,772
2	$1,24,000	0.769	$95,414
3	$1,24,000	0.675	$83,696
4	$1,24,000	0.592	$73,418
5	$1,24,000	0.519	$64,402
6	$1,24,000	0.456	$56,493
7	$1,24,000	0.4	$49,555
		Net Present Value	$2,19,250