please answer all parts using excel and show work/formulas. thank you!

The Drillago Company is involved in searching for locations in which to drill for oil. The firm's current project requires an initial investment of $15 million and has an estimated life of 10 years. The expected future cash inflows for the project are as shown in the following table. 3 4 5 6 7 8 3 10 Year 1 2 3 4 5 6 7 8 9 10 Cash Inflows $ 600 000 1,000,000 1,000,000 2,000,000 3,000,000 3,500,000 4,000,000 6,000,000 8,000,000 12,000,000 11 13 15 16 IT The firm's current cost of capital is 13% 10 19 20 21 22 To Do Create a spreadsheet to answer the following questions: a. Calculate the project's net present value (NPV). Is the project acceptable under the NPV technique? Explain b. Calculate the project's internal rate of return (IRR). Is the project acceptable under the IRR technique? Explain e. In this case, did the two methode produce the same results? Generally, is there a preference between the NPV and IRR techniques? Explain d. Calculate the payback period for the project. If the firm wally accepts projects that have payback periodo between 1 and 7 years, is this project acceptable? 23 24 Solution 21 28 23 30 Estimated life ears Cost-of-capital) Initial investment 10 1396 $ 15,000,000 31 32 34 35 37 Year 0 1 2 3 4 5 6 7 8 9 10 Cash Flow 5-15,000,000 600,000 1,000,000 1,000,000 2,000,000 3,000,000 3,500,000 4,000,000 6,000,000 8,000,000 12,000,000 30 40 a. Calestate the project's not present a NPV). Is the project acceptable under the NPV technique? Explain 4 NVP 40 41 6 7 8 9 10 3.000.000 3,500,000 4,000,000 6,000,000 8,000,000 12,000,000 42 43 14 45 16 a. Calestate the project's net present value (NPV). Is the project acceptable under the NPV technique? Explain. NUP 48 49 the project since the NPV is 50 51 b. Calculate the project's internal rate of return (IRR) Is the project acceptable under the IRR technique? Explain IRR 54 55 the project since the IRR is the cost of capital (13%). ST 30 59 e. In this case, did the two methode produce the same results? Generally, is there a preference between the NPV and IRR techniques? Explain When the decision is simply accept or reject than the NPV and IRR method will always produce the same reults. However, when ranking weveral projects the NPV method is preferred over the IRR method because the IRR method assumes the cash flows are reinvested at the IRR. not the required cost of capital Is the statement above true or false? The statement is d. Calculate the payback period for the project. If the firm unally accepts projects that have payback periode between 1 and 7 years, in this project acceptable? 60 61 63 Payback $ -16,000,000 60 TO 0 1 2 3 4 5 6 7 8 9 10 T2 23 75 1 78 13 Payback period (years) Since the payback period is years the project is 84 85 87 83 Requirements 1 In cell D47, by using cell references to the given data and the function NPV, calculate the net present value of the project. 2 In cell C49, type either Accept or Reject depending on whether you would take on the project or not, based on the NPV rule. 86 3 In cell F49, type either > or or or