Solve the following questions using TVM functions in Excel. You will receive no credit if you type in numbers instead of using equations/functions/references in cells other than inputs.

8. You are going to invest $400,000 in a real estate investment project that generates the following cash flows. Year Cash flow 1 150,000 2 150,000 3 150,000 4 150,000 5 150,000 Assuming a 10% discount rate, what is the NPV of this project? What is the IRR? 9. You own a building that a local business wants to rent for the next 10 years. The business owner has offered to pay $50,000 today or pay $8,700 at the end of each of next 10 years. If your required rate of return is 12%, which payment schedule should you accept? 10. How much would you pay to participate in a real estate project that pays nothing for the next 10 years and $3,000 for the following 10 years if you can earn 12% return on other investments of similar risk? Assume the annual revenue is generated at the end of the year