Please show the answers neatly in Microsoft Excel, thank you

Question 2 (a) The calculation of present value (PV) or future value (FV) involves specifying the discount rater and the compounding period n. Create an Excel spreadsheet by specifying the following: The variable "Annual Discount Rate r in Cell A1. The "Compounding Period n in years) in Cell A2. Your choice of the discount rate value in Cell B1. Your choice of the compounding period in Cell B2 (n must be greater than 1). investment, or project valuation) using the discount rate and compounding period above and indicate if you are intending to calculate the PV or FV. Place your description in Cell E1. You may merge some cells if necessary. Based on your scenario, input your choice of PV (or FV) value in Cell B3. Use the Excel FV (or PV) function to compute the resulting FV (or PV) in Cell B4. Finally, in Cell B5, use the FV (or PV) formula to compute the resulting FV (or PV). Note that your answers in Cells B4 and B5 should be identical. In Column C, where applicable, display the formula that you used in Column B. (8 marks) This is a continuation of Question 2 (a). Define and discuss the difference between a stated interest rate and an effective annual rate (EAR). Suppose the annual discount rate r you specified in Question 2(a) is compounded quarterly instead of annually. Calculate the EAR (using Excel function) in Cell B7 and your calculation of the EAR (using formula) in Cell BS. Using the EAR, re-compute the FV (or PV) using Excel function (in Cell B9) and formula in Cell B10). In Column C, where applicable, display the formula that you used in Column B. In general, describe what will happen to the FV (and PV) if the discount rater is compounded more frequently. Discuss your observations of the change in the FV (or PV). (12 marks) Envision a saving plan with the following cash flows: You currently have $100 in your account. At the end of the first year, you deposit another $100. At the end of the second 200 and at the end of the third year, you deposit another $300. Illustrate the timeline for the cash flows. Using the interest rate that you have specified in Question 2(a), use the timeline and compute the future value by compounding forward one period at a time. You should clearly specify, for each period on your timeline, the amount of initial deposit, the compounded value, and the total amount. Create a table in an Excel spreadsheet. Let column A be the number of years, show your detailed calculation of the total amount at the end of the third year. Indicate the forma that you use in your computation. (14 marks) (d) A project's cash flow is expected to be as follow: By the end of year 1 and year 2, the project is expected to have a cash inflow of $2,200. By end of year 3, 4, and 5, the expected cash inflows are, respectively, $1,500, $3,000, and $1,000. The project's initial cash outflow is $8,000. Draw the timeline for the cash flows of this project Using the interest rate that you have specified in Question 2(a), use the timeline and compute the project's present value by discounting one period at a time. You should clearly specify for each period on your timeline: the amount of inflow/outflow, the discounted value, and the resulting PV. Create a table in an Excel spreadsheet. Let column A be the number of years, show your detailed calculation of the project's Net Present Value (NPV). Indicate the formla that you use in your computation. Briefly discuss whether you should invest in this project or not. (14 marks) In Question 2(c), we calculated future values of multiple cash flows. Discuss the difference (you may use an example) between the calculation of present values of multiple cash flows and the calculation of net present value (NPV). Contrast the usefulness of Excel's PV function and NPV function Describe the difference between values returned by Excel's NPV function and the actual calculation of NPV. (12 marks) Question 2 (a) The calculation of present value (PV) or future value (FV) involves specifying the discount rater and the compounding period n. Create an Excel spreadsheet by specifying the following: The variable "Annual Discount Rate r in Cell A1. The "Compounding Period n in years) in Cell A2. Your choice of the discount rate value in Cell B1. Your choice of the compounding period in Cell B2 (n must be greater than 1). investment, or project valuation) using the discount rate and compounding period above and indicate if you are intending to calculate the PV or FV. Place your description in Cell E1. You may merge some cells if necessary. Based on your scenario, input your choice of PV (or FV) value in Cell B3. Use the Excel FV (or PV) function to compute the resulting FV (or PV) in Cell B4. Finally, in Cell B5, use the FV (or PV) formula to compute the resulting FV (or PV). Note that your answers in Cells B4 and B5 should be identical. In Column C, where applicable, display the formula that you used in Column B. (8 marks) This is a continuation of Question 2 (a). Define and discuss the difference between a stated interest rate and an effective annual rate (EAR). Suppose the annual discount rate r you specified in Question 2(a) is compounded quarterly instead of annually. Calculate the EAR (using Excel function) in Cell B7 and your calculation of the EAR (using formula) in Cell BS. Using the EAR, re-compute the FV (or PV) using Excel function (in Cell B9) and formula in Cell B10). In Column C, where applicable, display the formula that you used in Column B. In general, describe what will happen to the FV (and PV) if the discount rater is compounded more frequently. Discuss your observations of the change in the FV (or PV). (12 marks) Envision a saving plan with the following cash flows: You currently have $100 in your account. At the end of the first year, you deposit another $100. At the end of the second 200 and at the end of the third year, you deposit another $300. Illustrate the timeline for the cash flows. Using the interest rate that you have specified in Question 2(a), use the timeline and compute the future value by compounding forward one period at a time. You should clearly specify, for each period on your timeline, the amount of initial deposit, the compounded value, and the total amount. Create a table in an Excel spreadsheet. Let column A be the number of years, show your detailed calculation of the total amount at the end of the third year. Indicate the forma that you use in your computation. (14 marks) (d) A project's cash flow is expected to be as follow: By the end of year 1 and year 2, the project is expected to have a cash inflow of $2,200. By end of year 3, 4, and 5, the expected cash inflows are, respectively, $1,500, $3,000, and $1,000. The project's initial cash outflow is $8,000. Draw the timeline for the cash flows of this project Using the interest rate that you have specified in Question 2(a), use the timeline and compute the project's present value by discounting one period at a time. You should clearly specify for each period on your timeline: the amount of inflow/outflow, the discounted value, and the resulting PV. Create a table in an Excel spreadsheet. Let column A be the number of years, show your detailed calculation of the project's Net Present Value (NPV). Indicate the formla that you use in your computation. Briefly discuss whether you should invest in this project or not. (14 marks) In Question 2(c), we calculated future values of multiple cash flows. Discuss the difference (you may use an example) between the calculation of present values of multiple cash flows and the calculation of net present value (NPV). Contrast the usefulness of Excel's PV function and NPV function Describe the difference between values returned by Excel's NPV function and the actual calculation of NPV. (12 marks)