Please include excel formulas

JTM Airlines, where you work, is looking at potentially buying more gates at their home airport. If it pays the airport $1M, JTM will hold exclusive rights to buy those gates for $17M (at the start) and $17.5M (one year later) at any time in the next 4 years. The option expires at the end of year 4. JTM's discount rate is 10%. What is the NPV of the gate purchases if it bought them today? Use the data in the Excel template provided.

Rates: Discount rate Risk-free rate 10.0% 6.0% 4 15 1 4.2 17.0 2 11.9 17.5 3 12.9 5.3 Scenario: No Real Options 6 7 8 2 8.0 9.8 12.8 15.9 1.3 0.1 0.3 5 8.1 3.5 9.4 10 15.2 0.1 11 14.9 8.1 12 14.6 (0.1) 13 15.5 0.2 14 16.6 0.1 15.2 4.1 Cash from Operations minus: Capital Expenditures = Net Cash Flow Terminal Value PV of NCF 67.8 1 4.2 2 11.9 3 12.9 5.3 4 9.4 4.1 5 8.1 3.5 6 8.0 1.3 Scenario: Real Options 7 8 9 9.8 12.8 15.9 0.1 0.3 10 15.2 0.1 11 14.9 8.1 12 14.6 (0.1) 13 15.5 0.2 14 16.6 0.1 15 15.2 4.0 Cash from Operations minus: Capital Expenditures = Net Cash Flow Terminal Value PV of NCF PV of Cap. Ex. (Yrs. 1-2) 6.0% 10% 67.8 Option Pricing: PV of Cap. Ex. (Yrs. 1-2) Maturity PV of NCF Risk free rate Volatility BS calculations: di N(1) d2 N(02) Price of call Difference: - Value of Option over PV - % of PV #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0