Barium Inc. wants to set up a private cemetery business. The project will have sales of $500,000 and operating expenses of $300,000 in its first year. Sales are expected to grow at 4% per year for 10 years, while operating expenses are expected to grow at 3.5% per year for the same time period. This project would require an initial investment in Land of $1,000,000 and an initial investment in Equipment of $200,000. The Land is not depreciable, and the Equipment will be depreciated straight-line to zero over the 10-year life of the project. The Land will be sold at no gain for $1,000,000 at the end of the project and Equipment will be sold at the end of the project for a gain of $50,000. Bariums income tax rate is 20% and its discount rate is 9%.

Construct an Excel spreadsheet to calculate the projects NPV and IRR.