Instruction: i want you to practice using excel for this question. We will have computer based test later, so good to have some practice. Build a quarterly cashflow for each of the inflows and outflows below. When using NPV function in excel, all cell in the range need to contain an amount or value of $0,$ if not the computation is wrong.

An insurance company is considering setting up a branch in a country in which it has not previously operated. The company is plan to exit the project after $15$ years. Its cost of capital is $9\%$

The following cashflows are generated in the development and operation of the branch.

Cash Outflows

$1)$ Between the present time and the opening of the branch in three years$$ time the insurance company will spend $$1\mathrm{.}3$m per annum on research, development and the marketing of products. This outlay is assumed to be a constant continuous payment stream.

$2)$ The rent on the branch building will be $$0\mathrm{.}3$m per annum paid quarterly in advance for twelve years starting in three years$$ time.

$3)$Staff costs are assumed to be $$1$m in the first year, $$1\mathrm{.}05$m in the second year, rising by $5\%$ per annum each year thereafter. Staff costs are assumed to be incurred at the beginning of each year starting in three years$$ time and assumed to be incurred for $12$ years.

Cash Inflows

$1)$The company expects the sale of products to produce an income with $$5$m for the first year after the branch opens and the amount rises by $$0\mathrm{.}25$m per annum for the following years. This income is assumed to be received at the end of each year

The company expects to be able to sell the branch operation $15$ years from the present time for $$8$m$.$

Find NPV of the project over the $15$ year investment horizon, in million, with $3$ decimal point.