Your assignment is to prepare a spreadsheet similar to the example given (with the same numbers). This particularspreadsheet is set up to provide a schedule of lease payments (amortization schedule) for a five-period lease withpayments made once each year at the beginning of the year with the option of including a bargain purchase optionamount or excess guaranteed residual value. Your task is to make the spreadsheet general enough that I could inputany new numbers for the annual lease payment, bargain purchase option amount or excess guaranteed residual value,and interest rate (cells E5, E7, and E8 in the example) and automatically have an updated amortization schedule forany five-period capital lease with payments at the beginning of the period. In your spreadsheet, all of your numberscorresponding with the shaded cells in my example should be the result of formulas referring to other cells in thespreadsheet, NOT the result of simply typing numbers into your spreadsheet cells (but you do not need to shade yourcells).You are not required to use Excel, but I will give some help assuming that you use Excel. If you use anotherspreadsheet program, you will need to make sure you understand how to accomplish the requirements in thatprogram. The initial lease obligation (cell E11 in the example) should be a present value formula (PV inExcelmany of you will use the Insert Function command under Formulas) which calculates the present value of theliability based on the numbers in the cells above that (cells E5, E7, E8, and E9 in the example). The arguments ofthe present value formula can/should be cell addresses (except the last 1" to indicate beginning-of-year payments). Your initial lease obligation may come out negative by using the syntax given, so add a - sign to your formula sothat the lease obligation on your spreadsheet will be a positive number.You need to submit two pages for your solutionone page will have the spreadsheet with the numbers showing andthe other will have the spreadsheet with the formulas showing (You may need to adjust the column size of somecolumns to make sure all formulas are printed out completely. Since you are turning in formulas, I will not needyour file for grading). DO NOT submit the Excel file. Instead print each page to PDF format and submit thosePDFs. That way I can verify that you followed the instructions below. I will also ask for you to use the followingspecific format when you print your results:1.Each printout should have the row and column headings (A, B, C; 1, 2, 3, etc.)EXCEL:Print Preview/Page Setup/Sheet/Row and Column Headings (check this item)2.Each printout should have the gridlines printed.EXCEL:Print Preview/Page Setup/Sheet/Gridlines (check this item)3.Each printout should be formatted to fit on one page.EXCEL:Print Preview/Page Setup/Page/Fit to (check this item and put 1 wide x 1 tall)4.Each printout should be formatted using either the portrait or landscape format, whichever fits better for thatparticular printout (you may need to change your choice here when you print out your formulas).EXCEL:Print Preview/Page Setup/Page/Portrait or Landscape (check appropriate one)5.To print the format with the formulas instead of numbers use the following procedure in Excel (or useCTRL ~ to toggle back and forth from numbers to formulas):EXCEL:Formulas/Formula Auditing/Show Formulas (check this item)

Schedule of Lease Payments(Amortization Schedule)Five-Year Lease--Beginning-of-Year PaymentsAnnual Lease Payment$60,000Bargain Purchase Option Amount or Excess Guaranteed Residual Value$75,000Interest Rate for the Lease10.00%Life of the Lease (# of annual payments)5Initial Lease Obligation (Payable)$296,761.03InterestLeaseDateAmountExpensePrincipalObligationInitial Balance$296,761.03Beg of Year 1$60,0000$60,000$236,761.03Beg of Year 2$60,000$23,676.10$36,324$200,437.13Beg of Year 3$60,000$20,043.71$39,956$160,480.84Beg of Year 4$60,000$16,048.08$43,952$116,528.93Beg of Year 5$60,000$11,652.89$48,347$68,181.82End of Year 5$75,000$6,818.18$68,182$0.00