Please do in excel showing the work WansleyLumber is considering the purchase of a paper company, which wouldrequire an initial investment of $300 million. Wansley estimatesthat the paper company would provide net cash flows of $40 millionat the end of each of the next 20 years. The cost of capital forthe paper company is 13%. a. Should Wansley purchase the papercompany? b. Wansley realizes that the cash flows in Years 1 to 20might be $30 million per year or $50 million per year, with a 50%probability of each outcome. Because of the nature of the purchasecontract, Wansley can sell the company 2 years after purchase (atYear 2 in this case) for $280 million if it no longer wants to ownit. Given this additional information, does decision-tree analysisindicate that it makes sense to purchase the paper company? Again,assume that all cash flows are discounted at 13%. c. Wansley canwait for 1 year and find out whether the cash flows will be $30million per year or $50 million per year before deciding topurchase the company. Because of the nature of the purchasecontract, if it waits to purchase, Wansley can no longer sell thecompany 2 years after purchase. Given this additional information,does decision-tree analysis indicate that it makes sense topurchase the paper company? If so, when? Again, assume that allcash flows are discounted at 13%.