Instruction: For the following questions, with the help of the formulas learnt in topic 4 and 5, you are to use excel and calculate:

1. A project requires an initial cash outlay of $90,000 and is expected to generate $35 000 at the end of year 1, $43 000 at the end of year 2 and $40 000 at the end of year 3, at which time the project will terminate. Calculate the IRR of the project in excel. (2marks)

2. For the cash flows in the previous problem, calculate the NPV of the project at a required return of 9% using excel? (2 marks)

3. Construct an amortization schedule of a loan of $10,000 to be repaid over 10 years with a 10- ordinary annuity payment at effective rate of interest of 10% per year in excel. (3 marks)

4. Construct a sinking fund schedule for the loan of $15,000 to be repaid over 5 years with a 10- ordinary annuity payment at effective rate of interest of 8% per year in excel. (3 marks)