$1.$ Trips Logistics, a third$-$party logistics firm that provides warehousing and other logistics services, is facing a decision regarding the amount of space to rent for the upcoming four$-$year period. The general manager has forecast that Trips Logistics will need $100,000$ sq$.$ ft$.$ of warehouse space for each of the next four years. For the purposes of this discussion, the only cost Trips Logistics faces is the cost for the warehouse. The general manager must decide whether to sign a four$-$year rent or obtain warehousing space on the spot market each year. The four$-$year rent will cost $$1$ per square foot with the rental fee being paid upfront for the four year period, and the spot market cost is expected to be $$1\mathrm{.}20$ per square foot per year for each of the four years paid annually at the beginning of each year. The discount rate is $10\%$ per year.$$

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a$)$ Determine the NPV of each alternative using Excel.$$

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b$)$ Copy the Excel cells and embed it in this Word file.

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c$)$ Which alternative is better?

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d$)$ Given the uncertain nature of discount rate in reality, create a graph comparing the two alternatives across various discount rate scenarios from $5\%$ to $15\%$ per year?

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e$)$ At what specific spot market rate value do the two alternatives converge, indicating a break$-$even point?

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