Create a new workbook in Excel. Please include an input area and an answer area for each problem. You will have an answer for each bullet point. Formatting is up to you. Just make sure it is easy to tell where your answers are, and what equation you used in excel to get the answer.

1. Given the baseline gross receipts (no water restriction scenario) of irrigated cotton production versus the conversion of irrigated acres to dryland scenario, calculate the net present value (NPV) using a discount rate of 2.25% over the 10-year time period.

• What is the NPV of the baseline scenario?
• What is the NPV of the convert to dryland scenario?
• What is the loss in NPV due to conversion to dryland?

Year	Baseline Cash Flow ($)	Convert to Dryland Cash Flow ($)
1	43,841,598	42,745,984
2	41,473,691	40,343,665
3	39,225,605	38,074,361
4	37,095,304	35,931,035
5	35,141,529	34,007,707
6	33,326,061	32,229,290
7	31,604,896	30,543,673
8	29,973,180	28,946,113
9	28,426,293	27,432,091
10	26,959,839	25,997,313