please show equations and inputs

A 1 B E Question Suppose you are trying to open a restaurant that requires the initial Investment of $120,000. You expect to generate net cash flows of 20,000; 40,000; 50,000; 60,000; and 70,000 in the next five years, respectively. The market rate of return on similar business is 20%. You reuire to recover the initial cash investment of the project in 3 years using actual cash flows or 4 years using discounted cash flows. 2 5 3 4 5 2 1 Project Cash Flows Year Initial Investment Project cash flow Net cash flow 0 (120,000) 6 20,000 20.000 50,000 50,000 40,000 40,000 60,000 60.000 7 70,000 70,000 (120,000) 20% 10 11 3.00 Required Return Required Payback Period (Years) Required Discounted Payback Period (Years) 12 4.00 15 1. NPV NPV Decision? 1 Profitability Inde