This is what I have so far:

I need help with (3) IRR and (4) Payback period.

Please use equations to solve these (instead of excel shortcuts) and show what the equations are so that I know where the numbers that you are plugging in are coming from (because I can't tell or understand from the answers already on Chegg for this same exact question).

Question #1 A company will invest in a commercial building in the financial center of a metropolis. Below are the estimates associated with this commercial building: Interest Rate: 12% Year 1 After-Tax Cash Flow: $700,000 # of Years: Year 2 After-Tax Cash Flow: $750,000 Initial Outlay: $4 million Year 3 After-Tax Cash Flow: $800,000 Terminal/Residual Value $100,000 Year 4 After-Tax Cash Flow: $850,000 Year 5 After-Tax Cash Flow: $900,000 Year 6 After-Tax Cash Flow: $950,000 Year 7 After-Tax Cash Flow: $1,000,000 Year 8 After-Tax Cash Flow: $1,050,000 Calculate the following for this commercial building investment: (1) net present value, (2) profitability index, (3) internal rate of return, (4) payback period 5 Year Cash Flows 6 0 $ (4,000,000) 700,000 750,000 800,000 850,000 900,000 950,000 13 1,000,000 14 1,050,000 15 16 1. Net Present Value = 17 18 2. Profitability Index = PVE PV 1.00 (4,000,000) 0.89 623,000 0.80 600,000 0.71 568,000 0.64 544,000 0.57 513,000 0.51 484,500 0.45 450,000 0.40 420,000 12 202,500 1.05