(25 pts) Your corporation is considering the purchase of landfor the cost of $60,000 and you estimate that 6 years from nowthere is a 100% probability to sell the land for $165,000. Holdingcosts consist of property taxes of $2000 each year. Assume thatyour corporation is in the 21% effective ordinary tax bracket andthat profit from the sale of the land in 6 years will be taxed asordinary income (ignore capital gain taxes, depreciation, deductionfor interest expense), and your minimum rate of return is 14%.Determine:

a) What is the return on investment and NPV if paying cash forthe land?

b) What is the return on investment and NPV if you borrowed$48,000 of the $60,000 at 8% interest per year with a mortgageagreement that provides monthly payments over 10 years. Assume theloan is paid off at the end of year 6 when you sell theproperty.

c) Is this an acceptable investment project and why?

d) Suppose that upon further analysis, there is an 85%probability that the land will sell for $200,000 at the end of year6. What is the resulting cash and leverage NPV & ROR?

e) How does the analysis change; and is it still an acceptableproject and why?

All answers should be calculated in excel

-I thought I had it figured out but my answers look ridiculous!Any help would be deeply appreciated!