Background: Ohio State University sold the right to operate campus parking for $483 million. In exchange for the upfront payment, the purchaser collects all parking fees. The contract calls for parking rates to increase by 5.5% per year for first ten years and 4% thereafter. Answer the following questions assuming the contact lasts for 20 years, the first annual payment for managing the parking facilities is $36,351,926.10 and it was received at the end of the first year. Required: 1. Prepare an Excel spreadsheet detailing the annual payment over the contract life. In order to receive credit for you work, you must attach a copy of your Excel spreadsheet printed with the formulas showing ("Show Formulas" option). When displaying your answers round all numbers to the nearest dollar amount a. Calculate the parking fees for each year of the contract, and the total fees over the contract life. b. Use the NPV function to calculate the present value of the fees at 7% and 10% c. Determine the interest rate the purchaser is charging Ohio State University Ohio State added the $483 million in proceeds to its endowment to finance student scholarships. If each year Ohio State earns 6% on endowment and pays out 4% for scholarships, calculate the endowment balance at the end of each contract year Do you see any problems with this arrangement from Ohio State's perspective? 2. 3