The project that you are considering in question #1 will produce revenue of $50 for the next 6 years. Total operating costs are $15 per year and total depreciation is 20% of its initial cost per year for the first 5 years at which time the asset will be fully depreciated. You plan to sell the asset in year 6 for $10. The tax rate for your firm is 30%.

Using the above information compute payback period, IRR and the NPV profile in EXCEL assuming a cost of capital of 8%. When creating your NPV profile use interest rates from 2% to 16% in increments of 2%. Clearly illustrate all provided information in your EXCEL spread sheet.