Please show Excel formulas

1. Capital Budgeting Apache Airlines is looking to buy some gates at a West Coast airport. The key financial variables are below. Note that the gates revert back to the airport at the end of year 10. Purchase Price $25M Yearly Revenue $12M Operating Costs 40% of revenue Discount Rate 10% Gate Renovation (Fit-out Costs) $11M (year 2 and in year 6) Revenue Inflator 2.8% Tax Rate 21% What are the NPV and IRR of the gates? Should Apache invest in them? Why or why not? Apache Gate Purchase Purchase price Fit-out costs Yearly revenue Revenue inflator Operating costs (% of reveme) Discount rate Tax rate 8 Years 5 1 2 3 6 z 10 Investment Revenues Expenses Income before tax Taxes Net income after tax NPV IRR 1. Capital Budgeting Apache Airlines is looking to buy some gates at a West Coast airport. The key financial variables are below. Note that the gates revert back to the airport at the end of year 10. Purchase Price $25M Yearly Revenue $12M Operating Costs 40% of revenue Discount Rate 10% Gate Renovation (Fit-out Costs) $11M (year 2 and in year 6) Revenue Inflator 2.8% Tax Rate 21% What are the NPV and IRR of the gates? Should Apache invest in them? Why or why not? Apache Gate Purchase Purchase price Fit-out costs Yearly revenue Revenue inflator Operating costs (% of reveme) Discount rate Tax rate 8 Years 5 1 2 3 6 z 10 Investment Revenues Expenses Income before tax Taxes Net income after tax NPV IRR