Your company is undertaking a new project. A building was purchased 10 years ago for $750,000 depreciated straight line to $150,000 (the land value) over 30 years. It is now worth $500,000 (including $150,000 land). The project requires improvements to the building of $100,000. The improvements are depreciated straight line to zero over the life of the project. The project will generate revenues of $325,000, $350,000, $375,000 and $400,000 for years 1-4, respectively. Annual cash operating expenses are $80,000, $100,000, $120,000 and $140,000, respectively. The project will last 4 years, at which time the building will be sold for $600,000. Taxes are 40% and rate of return is 10%. Using Excel, prepare a spreadsheet and upload

9. What is payback in whole years?

10. What is Average Accounting Return? (correct format with at least 2 decimals)

11. Show how (algebraic format), IRR would be solved (do not solve).