please do on excel. At time $0$ a project requires an initial Cash Flow of $C{F}_0=-3,000.$ The project currently

pays $C{F}_1=600($year $1)$ and is expected to grow at $g=5\mathrm{.}5\%$ per year. Thus, the cash

flows at the beginning of year $1$ and on$,$ are $C{F}_1,C{F}_2=C{F}_1(1+g),C{F}_3=C{F}_2(1+g)=$

$C{F}_1(1+g{)}^2$ etc. The cash flows are expected to last for $20$ years $-$ that is including the initial

outlay from $0-20.$

Assuming a discount rate of $3\mathrm{.}5\%,$ use Excel to plot by year, the cash flows, and the

present value of each cash flow. Use two methods to calculate the $NPV$ of the project:

one uses the sum and the other one the inbuilt $NPV$ function. Express your answer in

currency. Find the effective rate of discount $($IRR$)$ using the inbuilt function.

Repeat the same exercise as in $1.$ for the case in which you have two rates of growth a

high growth rate $(g_h)$ for a certain number of years and then a more normal growth

rate $(g_n)$ for the remaining periods. Assume that the first cash flow in year $1$ is $C{F}_1=$

$600,$ that $g_h=8\%$ applies for the first $6$ years $($until year $6$ included$)$ and $g_n=4\%$

applies for the remaining $14$ years that is from year $7$ to year $20.$