please solve :

- please use the same format when solving the problem.

- show on excel

- show work

- show formulas

-explain

both images are the same problem

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A B D E F G H 1 2 P11-1M (change the initial cash outlay to $8.4 million and the annual cash 3 inflows to $1,850,000 per year. Also, include Profitability Index [PI] 4 calculation for all four rates) 5 6 Dowling Sportswear is considering building a new factory to produce aluminum baseball bats. This project would 7 require an initial cash outlay to $8,400,000 and would generate annual net cash inflows of $1,850,000 per year for 8 7 years. Calculate the projects NPV (and PI) using each of the following discount rates: a. 9% 9 b. 11% 10 c. 13% 11 d. 15% 12 13 14 15 16 Year Cost 17 0 $ (8,400,000.00) 18 1,850,000.00 19 2 1,850,000.00 20 3 1,850,000.00 21 4 1,850,000.00 22 5 1,850,000.00 23 6 1,850,000.00 24 7 1,850,000.00 25A B C D E F G H K L M 25 26 a. Rate = 9% given 27 FCF PV = FCF = Free Cash Flow, use NPV function in Excel for years 1-6 28 NPV = Add the amount from the FCF PV calc + year 0 amount 29 PI= = FCF PV / Year 0 (hint: make the Year 0 amount a positive number) - see page 340-341 30 31 b. Rate = 11% 32 FCF PV = 33 NPV = 34 PI= 35 36 c. Rate = 13% 37 FCF PV = 38 NPV = 39 PI= 40 41 d. Rate = 15% 42 FCF PV = 43 NPV = 44 PI= 45 46