1. Aliz Company is considering a 10 years project with a capital investment cost of 2,000,000 Rials in year 0, annual revenue of 400,000 Rials and operating costs 110,000 Rials starting year 1 till year 10. Assume that 30% of the project cost is funded by equity and the remaining 70% by debt, repayable over 10 years. The cost of debt is 6% per year. The depreciation expense that can be deducted annually is 10,000 Rials over 10 year period. A profit tax of 12% will apply. You are asked to assist Aliz Company in decision making by calculating:

1. The Project IRR before tax and financing (5 marks)

1. The Private IRR on equity after tax (20 Marks)

1. Should this project be undertaken assuming an opportunity cost of capital of 5.7%? (5 marks)

please provide excel sheet