b) You are an accountant with ABC Company and in the process of preparing a cash flow statement. You want to reflect the payments of the $1,000,000 bank loan in the statement. Use the NPER function to determine how many years it will take to pay off the bank loan based on the facts below:

NPER(rate,pmt,pv,fv,type)

The rate per year is 5.5% compounded quarterly.

The payment (pmt) is $89,000 per quarter.

The present value (pv) is $1,000,000, because the bank has offered to fund all of the capital required for the project.

The future value (fv) is assumed to be $0 because no mention is made of any residual amounts owed at the end of the loan.

The type argument is assumed to be the default 0.

You do not have to do the calculations just set up the formula, and explain the entries of the formula. (8 marks)