Jane Summers, a minister in an area church, has just inherited money from her mother's estate. She is considering investing part of these funds in a small catering operation to compliment the Churchs current social action projects. She would need to purchase a delivery van, pots, pans, computers and various other equipment costing $180,000 to start the business right now. She would be required to set aside $10,000 in working capital that will be released at the end of the project. Jane's marketing studies indicate that the cash sales of the food will amount to $90,000 per year. She will need to pay rent on the building to be used by the business of $24,000 per year. In addition to the building rent, other annual cash expenses for food, supplies, utilities and other operating costs will amount to $30,000. Jane will use volunteers so she will not need to pay labor. She hopes to use the catering business to teach new skills to the unemployed. Jane wants to operate the catering business for only six years. She estimates that the equipment could be sold at the end of the sixth year for $20,000. The church uses a required rate of return of 6%. Ignore taxes and depreciation. You must use Excel and follow the steps outlined in material With this information, answer the questions below.

What is the net present value of the project?

What is the internal rate of return of the project? (show at least 2 points after the decimal in your percentage for example 18.83%)

Upload your spreadsheet for the question above to this space. NOTE: Failure to properly use Excel will result in a deduction of points.

Write a brief email to Rev. Summers explaining your recommendation about the project and why. Be complete in your answer to receive full credit. Use an appropriate decision model to make your recommendation and consider all of the stakeholders.