Belgravia Petroleum Inc. is trying to evaluate a generation project with the following cash flows:

Year

Cashflow

$0$

$-$$$300,000,000$

$1$

$$63,000,000$

$2$

$$85,000,000$

$3$

$-$$$50,000,000$

$4$

$$145,000,000$

$5$

$$175,000,000$

$6$

$-$$$50,000,000$

$7$

$$70,000,000$

$8$

$$72,000,000$

Construct a spreadsheet and calculate the following $($the required rate of return is $12\%)$:

Payback period

Discounted payback period

Internal rate of return $($IRR$)$

Modified IRR

The discounting approach

The reinvestment approach

The combination approach

Net present value $($NPV$)$

Based on your analysis, should the company take the project? Why?

IMPORTANT: Use MS Excel functions $($PV$,$ FV$,$ NPV$,$ and IRR$)$ in your spreadsheet.