Net Present Value & Payback Calculations (USE EXCEL SPREADSHEET & SHOW STEPS) Use 7% annual discount rate. French consid

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Net Present Value & Payback Calculations (USE EXCELSPREADSHEET & SHOW STEPS) Use 7% annual discountrate.
French considered the details of each option, keeping in mindthat for long-term projects he would use adiscount rate of 7%.
Option 3: Add a Third ShiftFrench and one of his co-investors had extensive experience in thetrucking industry and had seen firsthandthe effect of utilizing equipment around the clock. French believedadding a third shift could unlock a lot ofvalue at Peregrine, and it could be done at a low cost. Adding athird shift would involve moving severalexisting employees to work the night shift and would also meanhiring some new employees. Although Frenchbelieved that in time he may add a full third shift to increaseoverall capacity, his initial plan was for the nightshift to run as a “skeleton crew” with the primary purpose ofkeeping the CNC machines operational for 24hours. He believed that adding a third shift would produce the sameincrease in revenue as adding a newCNC machine to his existing shifts. He estimated that adding athird shift would create $12,000 in additionalmonthly out-of-pocket operating costs, but no new machinery wouldneed to be purchased. Based on histrucking experience, French knew this option would be difficult toexecute, as there were major safety andsupervision challenges associated with running a night shift.
Please solve all the parts because it is part of thisone question.
Set up net cash flow over time (cash inflows minus cashoutflows)
Compute and compare the NPV and payback period of eachoption
Rounding to the nearest 1%, at what discount rate doesleasing produce a higher NPV than paying cash?