Using the initial investment and Total Cash Flows from below table calculate the following for the Project. a. Net Present Value b. Payback (Breakeven) C. Discounted Payback (Breakeven) d. Internal Rate of Return e . Average Accounting Return (Note: Average Book Value of Used Equipment= $60,000) The company's required rate of return for similar projects is 10% per year. Income Statement for X company Year ('000s) 1 2 3 4 5 6 Z 8 Revenues 50 $60.00 $85.00 $110.00 $160.00 $225.00 $300.00 $400.00 COGS 27.50 $33.00 $46.75 $60.50 $88.00 $123.75 $165.00 $220.00 Gross Profit 22.50 $27.00 $38.25 $49.50 $72.00 $101.25 $135.00 $180.00 Expenses General & Admin Expenses 7.50 $9.00 $12.75 $16.50 $24.00 $33.75 $45.00 $60.00 Depreciation Expense 15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 $15.00 Sales Salaries & Commissions 5.00 $6.0 $8.50 $11.00 $16.00 $22.50 $30.00 $40.00 Total Operating Expenses 27.50 $30.00 $36.25 $42.50 $55.00 $71.25 $90.00 $115.00 EBIT (5.00) ($3.00) $2.00 $7.00 $17.00 $30.00 $45.00 $65.00 Interest 5.00 $5.00 $5.00 $5.0 $5.0 5.00 $5.00 $5.00 Earnings Before Tax (10.00) ($8.0) ($3.00) $2.00 $12.00 $25.00 $40.00 $60.00 Less Taxes (35%) 0 $0.7 $4.20 $8.75 $14.00 $21.00 Net Income (10.00) $8.00) ($3.0) $1.30 $7.80 $16.25 $26.00 $39.00 Operating Cash Flow $5.00 $7.00 $12.00 $16.30 $22.80 $31.25 $41.00 $54.00 Initial Investment ($120.00) $5.00 Total Cash Flows ($120.00) $5.00 $7.00 $12.00 $16.30 $22.80 $31.25 $41.00 $54.00 While working on these, following are my observation on which I worked. 1)If a Company has negative earnings before tax, no taxes are due. No tax is being applicable 2) Operating Cash Flow = Operating Income + Depreciation - Taxes + Change in Working Capital. because there is no information provided for change in working capital, it is assumed to be 0