Net Present Value & Payback Calculations (USE EXCEL SPREADSHEET & SHOW STEPS. Need 1 CALCULATION PER OPTION SO 1 SPREADS

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Net Present Value & Payback Calculations (USE EXCEL SPREADSHEET & SHOW STEPS. Need 1 CALCULATION PER OPTION SO 1 SPREADSHEET EACH) Use 7% annual discount rate.
French considered the details of each option, keeping in mind that for long-term projects he would use adiscount rate of 7%.
Option 1: Purchase a New CNC Machine with CashAlthough it would be costly, the idea of adding a third CNC machine appealed to French. It would providehim peace of mind that if there were a breakdown, jobs would continue on schedule. French’s preliminaryresearch revealed that the cost of the new equipment would be $142,000. He also estimated that there wouldbe increased out-of-pocket operating costs of $10,000 per month if a new machine were brought online. Afterfive years, the machine would have a salvage value of $40,000. Although Peregrine did not have the cashreadily available to make the purchase, French believed that with a small amount of cash budgeting andplanning, this option would be feasible.
Option 2: Finance The Purchase of a new CNC MachineThe company selling the CNC machine also offered a leasing option. The terms of the lease included a downpayment of $50,000 and monthly payments of $2,200 for five years. After five years, the equipment could bepurchased for $1. The operating costs and salvage values would be the same as option 1, the purchasingoption. The company had the necessary cash on hand to make the down payment for the lease. With both theleasing and purchasing options, the company had sufficient space to operate the new equipment, and Frenchbelieved he had almost all of the right employees in place to execute this plan.
Option 3: Add a Third ShiftFrench and one of his co-investors had extensive experience in the trucking industry and had seen firsthandthe effect of utilizing equipment around the clock. French believed adding a third shift could unlock a lot ofvalue at Peregrine, and it could be done at a low cost. Adding a third shift would involve moving severalexisting employees to work the night shift and would also mean hiring some new employees. Although Frenchbelieved that in time he may add a full third shift to increase overall capacity, his initial plan was for the nightshift to run as a “skeleton crew” with the primary purpose of keeping the CNC machines operational for 24hours. He believed that adding a third shift would produce the same increase in revenue as adding a newCNC machine to his existing shifts. He estimated that adding a third shift would create $12,000 in additionalmonthly out-of-pocket operating costs, but no new machinery would need to be purchased. Based on histrucking experience, French knew this option would be difficult to execute, as there were major safety andsupervision challenges associated with running a night shift.
Please solve all the parts because it is part of this one question.
Set up net cash flow over time (cash inflows minus cash outflows)
Compute and compare the NPV and payback period of each option
Rounding to the nearest 1%, at what discount rate does leasing produce a higher NPV than paying cash?