A F G B H Delta. For the Delta column, subtract Warchouse from Tower for cach cash flow. 6 Find the IRR and the NPV for the Delta. Conclusion: The project Delta's NPV is positive, and the IRR is greater than the cost of capital This confirms the choice of Tower over Warehouse 5 8 7 58 9 Test your skills with this problem 30 S. S. Sariar (S.S.S.), a real estate investment company, is considering investing in a shopping center. The sale price is $5,000,000 and S.S.S. expects to have positive after-tax and after-mortgage payment cash flows from rents of $600,000 for the next three years. S.S.S. can obtain a mortgage with a downpayment of $3,000,000. At the end of the third year, S.S.S. anticipates selling the shopping center for a net after-tax gain on sale 91 of $4,500,000. 1 S.S.S.'s roquired retum is 30%, should S.S.S. go ahead and purchase the shopping center? 92 Fill in the inputs NPV & TRR Tables year cash flow 0 1 2 3 NPV Inputs: Initial outlay CF ATGS IRR 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 Calculate the NPV and the IRR. Indicate the investment decision in cell E104 Decision What is the maximum down payment S.S.S noods to make, assuming it does not effort the yearly cash flows, for S.S.S. 19 exactly moet its required retum of 30%? Hints Use Goal Socks IRR (ell D100) at 0,tat 30, and the changing cell at Initial outlay. und dick okay. (The amount is greater than the initial outlay of $3,000,000