Can you answer q1,2,3,4,5,6,7, please?

\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{3}{|c|}{ Capital Budgeting Decisions Exejcise_(2) } & & & \multicolumn{2}{|c|}{ Instructor: Dr. Lou } & & & & & & & & & & & \\ \hline \multicolumn{18}{|c|}{ Leaming Obiectives } \\ \hline & & & & & & & & & & & & & & & & & \\ \hline \multicolumn{18}{|c|}{ 2. Apply capital budgeting to propertv investment } \\ \hline \multirow{2}{*}{\multicolumn{2}{|c|}{\begin{tabular}{l} (a) Develop proforma cash flows \\ (b) Compute NPY IRR \end{tabular}}} & for property investm & ent project & & & & & & & & & & & & & & \\ \hline & & & & & & & & & & & & & & & & & \\ \hline \multirow{2}{*}{\multicolumn{2}{|c|}{ (c) Develop Problem-Solving and }} & Critical Thinking Ski & & & & & & & & & & & & & & & \\ \hline & & & & & & & & & & & & & & & & & \\ \hline \multicolumn{5}{|c|}{ 1) buy house in all Cash Or Mortgage; project period =15 years } & & \multicolumn{3}{|c|}{ 5) Rent-to-Price Ratio } & & & 10% & & & & & & \\ \hline \multicolumn{2}{|l|}{ 2) property value } & $200,000 & & & & \multicolumn{5}{|c|}{ 6) inflation, rental, property value appreciation } & 3.50% & & & & & & \\ \hline \multicolumn{2}{|c|}{ 3) down payment } & $50,000 & & & & \multicolumn{5}{|c|}{ 7) sell the property at the end of 15 th year } & & & & & & & \\ \hline \multicolumn{2}{|c|}{ 4) 10 -yr mortgage at 5.5%} & ($19,900) & & & & \multicolumn{3}{|c|}{ 8) annual rental income } & & & $20,000 & & & & & & \\ \hline \multirow{2}{*}{\multicolumn{18}{|c|}{ case 1: Investment }} \\ \hline & & & & & & & & & & & & & & & & & \\ \hline NPV= & IRR= & CFO & CF1 & CF2 & CF3 & CF4 & CF5 & CF6 & CF7 & CF8 & CF9 & CF10 & CF11 & CF12 & CF13 & CF14 & CF15 \\ \hline \multicolumn{18}{|c|}{ (NO inflation, rental, property velue appreciation) } \\ \hline$60.63276 & 13.51% & 50,000 & 100 & 100 & 100 & 100 & 100 & 100 & 100 & 100 & 100 & 100 & 20,000 & 20,000 & 20,000 & 20,000 & 220,000 \\ \hline$510721 & 100% & 200,000 & 20,000 & 20,000 & 20,000 & 20,000 & 20,000 & 20,000 & 20,000 & 20,000 & 20,000 & 20,000 & 20,000 & 20,000 & 20,000 & 20,000 & 220,000 \\ \hline \multirow[t]{3}{*}{ Q\#1 } & \multicolumn{3}{|c|}{ Use IRR to comapare Cash vs Mortgage? } & \multicolumn{12}{|c|}{ The first case shows that it would be better to invest in a house with mortgage because the IRR is 13.51% and cash is only 10%. } & & \\ \hline & \multicolumn{12}{|c|}{ With all cash buying, all the retum of the property (from rental) is eamed and not offsetted by mortgage cost, hence Cash better than Mortgage? } & & & & & \\ \hline & & & & & & & & & & & & & & & & & \\ \hline Q\#2 & At required ret & im 7\%, find NPVs to & compare & Cash vs Mc & lortgage (mutual & ally exclusive), & conclusion & n consister & t with IRR? & & & & & & & & \\ \hline & How about requ & iired rate 6%, requir & ed rate 5.5 & 5%, require & ed rate 5%, etc. & ., discuss you & Ir finding. & & & & & & & & & & \\ \hline & & & & & & & & & & & & & & & & & \\ \hline (WITH inflation & rental, property & value appreciation) & & & & & & & & & & & & & & & \\ \hline & 1927% & 50,000 & 100 & 800 & 1,524 & 2,274 & 3,050 & 3,854 & 4,685 & 5,545 & 6,436 & 7,358 & 28,212 & 29,199 & 30,221 & 31,279 & 367,444 \\ \hline & 13.50% & 200,000 & 20,000 & 20,700 & 21,425 & 22,174 & 22,950 & 23,754 & 24,585 & 25,446 & 26,336 & 27,258 & 28,212 & 29,199 & 30,221 & 31,279 & 367,444 \\ \hline & & *growing rental & 20,000 & 20,700 & 21,425 & 22,174 & 22,950 & 23,754 & 24,585 & 25,446 & 26,336 & 27,258 & 28,212 & 29,199 & 30,221 & 31,279 & 32,374 \\ \hline Q\#3 & Now assume re & ntal grows with infla & tion, does & your conc & clusion (Cash v & /s Mortgage, w & hich is bet & tter, by IRR & criterion) c & lange? Use & your numb & ers to find & support fo & "Rental & is a hedge & against i & inflation". \\ \hline & & & & & & & & & & & & & & & & & \\ \hline case 2: Owners & & & & & & & & & & & & & & & & & \\ \hline & & & & & & & & & & & & & & & & & \\ \hline & =207% & 50,000 & (19,900) & (19,900) & (19,900) & (19,900) & (19,900) & (19,900) & (19,900) & (19,900) & (19,900) & (19,900) & 0 & 0 & 0 & 0 & 200,000 \\ \hline & 0.0% & 200,000 & 0 & 0 & 0 & 0 & 0 & 0 & 0 & 0 & 0 & 0 & 0 & 0 & 0 & 0 & 200,000 \\ \hline Q\#4 & When you buy & the house just for s & elf-use, wh & hat's your c & conclusion (Cas & sh vs Mortgag & e, which is & better) no & w based on & IRR, explair & & & & & & & \\ \hline Q\#5 & Now go back to & case 1, think of are & as with low & ver Rent-to & o-Price Ratios (e & e.g., San Frans & isco, NYC). & & & & & & & & & & \\ \hline & Try at least thre & Rent-to-Price ratio & 5:8%,5.5% & % and an e & even lower one & , and discuss & your findin & ngs regardir & g 'Cash vs & Mortgage, w & which is bett & er, by IRR c & riterion'. & & & & \\ \hline Q\#6 & Discuss/digest/ & summarize your If-T & hen finding & gs so far. & & & & & & & & & & & & & \\ \hline Q\#7 (optional) & Discuss any add & itional insights you & may have g & gathered fr & rom this exercis & ise (e.g., see t & the effects & of inflation & rates on th & e scenatios & 5; redo Q\#5 & by accounti & ng for in & on). & & & \\ \hline \end{tabular}