please show work on excel spread sheet

+ Hint: You MUST use EFF for your interest rate For problems 5 & 6 use required nominal annual return of : 5. Consider the following end-of-year cash flows: 8.00% Year Cash flow 0 $0.00 1 $40.00 2 $60.00 3 $60.00 Net Present Value (NPV) a. What is the present value of these cash flows (in year 0)? b. If the purchase price of this investment is $140 today, would you buy it? Why? (Compare instrinsic value to actual price) c. What is the expected rate of return on this investment if the purchase price is $140? Year Cash flow Internal Rate of Return (IRR) 0 -$140.00 1 $40.00 2 $60.00 3 $60.00 d. Would you buy this investment based on your answer to part c. and why? (Compare expected return to required return). 6. Consider the present value of the following different investments. Present Value Recall the nominal rate 8.00% a. What is the present value of $1,000,000, due 25 years from now? b. What is the present value of a $40,000 ordinary annuity for 25 years? (Hint: $40,000 is the payment) c. What is the present value of a $40,000 perpetuity, if the first payment is 1 year from now? d. What is the present value of a $40,000 perpetuity, if the first payment is now? Vantaan toond will MacBook Air