Please calculate in Excel

Follet Enterprises has purchased three greenhouses over the past five years, but today it sold them all for $500,000. Five years ago, Follett purchased the first greenhouse for $300,000, two years later it purchased the second for $250,000, and last year it purchased one for $400,000. Follett Enterprises has a marginal tax rate of 30 percent. CCA on greenhouses is 10 %.

a.Calculate the tax shields and any tax taxes payable to Follett on an annual basis over the five-year period resulting from these investments.

b.Assuming the asset pool continues, calculate the tax shields on an annual basis over the five-year period.

c.Calculate the present value of the tax shields and any taxes payable under the assumptions of part a and b. Calculate the present value of the CCA tax shields with PV of CCA tax shield = [Cpv - Spv] (dTc/r+d) (1+0.5r/1+r) and compare your results. Follett's cost of capital is 14 %.