You are considering a project that will cost $109. Write down the cost of your project in the text box below.

1. The project that you are considering in question #1 will produce revenue of $48 for the each year of operation. Total operating costs are $10 per year and total depreciation is 25% of its initial cost per year for the first 4 years at which time the asset will be fully depreciated. You plan to sell the asset in year 5 for $9. The tax rate for your firm is 30%. Using the above information compute payback period, IRR and the NPV profile in EXCEL. Assume a required rate of return of 10% with the project. 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.