3. More Excel Now that you have learned the basics, calculate the present value of the following four alternative payment streams with interest rates R = 5% and R = 9%, and rank the alternatives: (i) $1,200,000 now (ii) $1,600,000 at the end of four years (iif) $80,000 per year in perpetuity, with payments made at the end of each year (so your first payment comes one year from today) (iv) $175,000 per year for the next ten years, with payments made at the end of each year (so your first payment comes one year from today) Do this by entering the interest rate (e.g., 0.05) in cell Al. In Bl, enter the payment of option (i), that is, 1,200,000. In B2, enter the present value of this payment ("= B1"). In Cl, enter 1,600,000. In C2, enter the formula for the present value of this payment: "=C1/(1 + Al)^4"). Fill in columns D and E in the same spirit. Always refer to cell Al when you use the interest rate. Once you are done, you can just replace the value in Al by a different number (e.g., 0.09) and Excel will re-calculate all cells for you. So after you fill in the cells once, it is really easy to calculate the present values for different interest rates. This is why it's important to always refer to Al when you use the interest rate: so that Excel knows how to re-calculate the formulas when you change the interest rate