(For this part, you MUST present sufficient solution steps, andMUST apply specific Excel functions =NPV(…), =IRR(…), =AVERAGE(…),=YIELD(…) whenever applicable..) Ferengi, Inc. is subject to anapplicable corporate tax rate of 21 percent, and the weightedaverage cost of capital (WACC) of 12.5 percent. There is nospecific time constraint on investment project paybackrequirements. Q1: Ferengi is currently contemplating two capitalinvestment plans. Plan A: the upgrade of an information system withan installed cost of $2,400,000. The upgrade system will bedepreciated straight-line to zero over the project’s five-yearlife, at the end of which the system will be worth $400,000 at themarket. The system upgrade will not affect sales, but will save thefirm $700,000 per year in pretax operating costs; and the upgradewill increase the working efficiency and reduce the net workingcapital expenditure by $300,000 at the beginning year. What is theNPV of Plan A? What is the IRR of Plan A? Should Ferengi accept orreject Plan A? Q2: Instead of Plan A, Ferengi can alternativelychoose Plan B: allocate the $2,400,000 capital budget to develop anew product line. The new product line will be depreciatedstraight-line to zero over the project’s ten-year life, at the endof which the system will be worth $100,000. The new product linewill not only add the firm $830,000 per year in sales, but also add$200,000 per year in pretax operating costs; and the new projectline requires an initial investment in net working capital of$300,000 at the beginning year. What would be the NPV of Plan B?What would be the IRR of Plan B? If these two plans are mutuallyexclusive, shall Ferengi finally choose Plan A or B? This should bedone in excel and please show me how you got the formulas inexcel....(PLEASE SHOW THE FUNCTIONS IN EXCEL) DO NOT JUST SHOW THEANSWERS BUT THE ACTUAL FORMULAS USED IN EXCEL