This project requires you to compare renting versus owning a home. Assume the home can be rented for $15,000 for the first year, with an annual 2 percent rental growth rate. Alternatively, it can purchased for $160,000 with a $35,000 down payment and financed with a fully amortizing mortgage loan of $125,000 at 2 percent interest for 30 years. Other costs associated with owning include maintenance costs of $450, insurance costs of $350, and property taxes of 3.5 percent of the purchase price. Assume the income tax rate is 21 percent. Growth rates for expenses including insurance, maintenance, and property taxes, are equal to 2.5 percent per year. The property value will grow at a rate of a constant 1.8 percent per year. After five years, the property will be sold. Selling expenses of 6 percent would have to be paid at that time. Be sure to show your work in Excel. In other words, do not simply type values into the boxes, but reference prior cells when calculating results. In your report, identify and explain the cash flow in each year, for owning relative to renting. If an annual after tax return of 20 percent is available on an investment of comparable risk, which is the better option, owning or renting? Part 1: Property and Loan Information A) Fill in the table for the property information. (8 points) B) Fill in the table for the loan information. Use the Excel PMT function to calculate the monthly payment. (8 points) Part 2: Loan Schedule C) Fill in the table for the loan schedule over five years. Make sure you reference cells (e.g., monthly payment and periodic rate). (8 points) D) Fill in the table for the yearly summary of the loan schedule. (8 points) E) Fill in the table for the yearly property data. Apply the FV formula using the correct growth rates. (8 points) Part 3: Cash Flow Analysis F) Fill in the table for the before tax cash flows from owning. (8 points) G) Fill in the table for tax deductions. (8 points) H) Fill in the table for net cash flows from owning. (8 points) I) Fill in the table for the cash flows from selling the home in year 5. (8 points) J) Fill in the table for the net cash flows. Assume no taxes are due on the benefit from sale. Calculate the internal rate of return (IRR) using the Excel function. (8 points)