Answer the following question:

Show how the present value was calculated using excel formula PV and NPV.

The pre-tax cost of debt is 5.5%.

\begin{tabular}{lll} Year & \multicolumn{2}{l}{ Commitment Present Val } \\ 1 & $997 & $945.02 \\ 2 & $841 & $755.60 \\ 3 & $710 & $604.65 \\ 4 & $602 & $485.94 \\ 5 & $483 & $369.56 \\ 6 and 7 & $741.40 & $1,047.50 \\ Debt value of leases & $4,208.28 \end{tabular}