USE EXCEL FORMULAS FOR EACH ONE: Accessibility tab summary: Financial information for Laurman, Incorporated, $is$ presented $in$ rows $4to18.$ A statement $of$ requirement $is$ presented $in$ row $22.$ Table $1$ for student presentation $is$ presented $in$ row $24.$ A statement for requirement $1is$ presented $in$ rows $26.$ A table for student presentation $is$ presented $in$ cells $A28toD36$ and rows $38to40$ and $42,44$ and $46.$

Laurman, Incorporated $is$ considering the following project:

Required investment $in$ equipment $$2,205,000$

Project life $7$

Salvage value $225,000$

The project would provide net operating income each year $as$ follows:

Sales $$2,750,000$

Variable expenses $1,600,000$

Contribution margin $$1,150,000$

Fixed expenses:

Salaries, rent and other fixed out$-of$ pocket costs $$520,000$

Depreciation $350,000$

Total fixed expenses $870,000$

Net operating income $$280,000$

Company discount rate $18\%$

Required:

$(Use$ cells $A4toC18$ from the given information, $as$ well $asB24,$ and $A30toD46to$ complete this question. Negative amounts $or$ amounts $tobe$ deducted should $be$ input $as$ negative values and will display $in$ parentheses.$)$

$1.$ Compute the annual net cash inflow from the project. $$8$

$2.$ Complete the table $to$ compute the net present value $of$ the investment.

Year$(s)$

Now $1$ through $77$

Initial investment

Annual cost savings

Salvage value $of$ the new machine

Total cash flows

Discount factor $1\mathrm{.}00000$

Present value $of$ the cash flows

Net present value

Use Excel's $PV$ function $to$ compute the present value $of$ the future cash flows

Deduct the cost $of$ the investment

Net present value

$3.$ Use Excel's RATE function $to$ compute the project's internal rate $of$ return

$4.$ Compute the project's payback period. years

$5.$ Compute the project's simple rate $of$ return.