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Setup a capital contribution account in Excel using the corkscrew methodology. Ignore fees and expenses. O Model periods 0 through 5 $100 is called at

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Setup a capital contribution account in Excel using the corkscrew methodology. Ignore fees and expenses. O Model periods 0 through 5 $100 is called at the end of Period 0 O$200 is called at the end of Period1 O No cash flow transfers during Period 2 $20 is distributed at the end of Period 3 O$40 is distributed at the end of Period 4 $40 is distributed at the end of Period 5 a$600 is also distributed at the end of Period 5 OUse formulas to calculate balances to the degree possible Based on the model you set up: 1. How much capital is distributed during Period 5 to reduce the capital outstanding balance to zero? 2. How much cash remains (is available) once the capital contribution account has been reduced to zero? 3. Can you determine what the return is to the investor? 4. What do you think the $20, $40, and $40 distributions in Periods 3, 4, and 5, respectively, represent? 5. What do you think the $600 distribution represents? 6. Is this a good investment? Present at least two reasons why. Record your responses here: 2 3 4 5 i 5 ii Setup a capital contribution account in Excel using the corkscrew methodology. Ignore fees and expenses. O Model periods 0 through 5 $100 is called at the end of Period 0 O$200 is called at the end of Period1 O No cash flow transfers during Period 2 $20 is distributed at the end of Period 3 O$40 is distributed at the end of Period 4 $40 is distributed at the end of Period 5 a$600 is also distributed at the end of Period 5 OUse formulas to calculate balances to the degree possible Based on the model you set up: 1. How much capital is distributed during Period 5 to reduce the capital outstanding balance to zero? 2. How much cash remains (is available) once the capital contribution account has been reduced to zero? 3. Can you determine what the return is to the investor? 4. What do you think the $20, $40, and $40 distributions in Periods 3, 4, and 5, respectively, represent? 5. What do you think the $600 distribution represents? 6. Is this a good investment? Present at least two reasons why. Record your responses here: 2 3 4 5 i 5

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