do it in excel thanks

1. You are presented with two options: Option A An annual payment of $1,000 for three years at the end of each year, and $1,200 for an additional ten years starting at the end of the fourth year. Option B - A one-time lump-sum payment of $10,000 at the end of the first year. [2 points] a. If the annual interest rate is 5%, which option would you prefer? [0.75 points] b. Consider the cash flows of option A minus Option B. Compute the IRR of this stream of cash flows. [0.25 points] If the discount rate is greater than the IRR which investment should you chose? If the discount rate is less than the IRR which investment should you chose? [0.5 points] d. Use economic intuition, to explain why the appeal of Option 1 relative to Option 2 depends on the interest rate. [0.5 points] C