Question 1 A company borrows $10,000 from a bank at nominal interest rate of 2.64 % pa compounded yearly. The money is invested in a venture that yields the following cash

flows at end of each year: Year Sales income $5000 $6000 $7000 $5000 Project closed and equipment sold for $4000 1 2 3 4 5 Operating Expenses (Raw Material, Labor, Management) $3000 $4000 $5000 $3000 1 pts 1. Draw a cash flow diagram in Excel. 2. Calculate the Cumulative Cash flow each year and plot the Cumulative Cash Flow Diagram 3. Calculate the Present Worth of cash flows each year (Discounted Cash Flow) and plot the Discounted cash flow diagram. 4. Calculate the Net Present Worth of the project and enter it in the Answer Box below. 5. Compute the Discounted PayBack Period if the interest is 2.5% pa (per annum or per year) 6. What is the Discounted Cash Flow Rate of Return (DCFROR) also known as the Interest Rate of Return (IRR)? Compute using Goalseek and Solver in Excel.