Only do questions c & d please. Thanks.

5. A golf developer wishes to build a new golf course. It will cost $2 million now (time 0) for buying the land and the initial design and development. An additional $800,000 will be spent at the end of the 1st year for more course development work. The course will open halfway through year 2 and is expected to generate $300,000 in revenues (cash inflows will $300,000 at time 2). During this year, $600,000 will be spent on a new clubhouse (cash outflow of $300,000 at time 2). Net revenues are projected to be $400,000 for year 3, $500,000 for year 4, $600,000 for year 5 and $700,000 for years 6 to 15 (assume all values are at the end of the year). The developer will then sell the course at the end of the 15th year $3.5 million (time 15). (a) Calculate the net present value of this investment at the following cost of capital rates: 0%, 2%, 4%, ..., 28%, 30%. Then graph your results. (Hint: try using the NPV function in Excel) (2 + 2 = 4 marks) (b) Calculate the internal rate of return (IRR) for this investment to 2 decimal points. (Hint: try using IRR function in Excel) (2 marks) (c) It turns out that golf was a fleeting fad and actual revenues in years 7 to 10 were $600,000, $500,000, $400,000 and $300,000. What rate of return (IRR), to two decimal points, does the developer actually earn after 10 years? (2 marks) (d) To combat the declining revenues of (C), the developer spends an additional $600,000 at the end of year 10 (time 10) to build a double curling rink in order to offer sporting activities year round. Revenues for the next 5 years are estimated to be $800,000 (time 11 to 15). At the end of the last year, the developer sells the course and curling rinks for $4 million. What was the final IRR, to two decimal points? (2 marks)