Please use excel to solve this question and show the formulas you used to calculate it.

1 Internal Rates of Returnj Vail Venture Investors, LLC has recently acquired a 40 percent equity ownership in Black Hawk Products, Inc. in exchange for a S5 million investment. Vail Venture Investors is interested in estimating an expected compound rate of return on its investment. Depending on the success of products currently under development, Vail Venture 's investment in Black Hawk could turn out to be a complete failure (black hole), barely surviving living dead), or wildly successful (venture utopia). Vail Venture has assigned probabilities of 20,.50, and.30, respectively, to the three possible outcomes. Following are the 3 cash flow scenarios or outcomes for the Black Hawk Products investment that Vail Venture expects to exit at the end of five years Outcome Black Hole Living Dead Venture Utopia S0 0 0 00S10 million 0 0 00S50 million Part A A. Calculate the internal rate of return (IRR) for each scenario or outcome for Black Hawk Products. B. Calculate the weighted average of the IRRsfor the three scenarios. What is the expected IRR for the Black Hawk Products venture? C. What would be Vail Venture Investors expected IRR if its S5 million investment in Black Hawk Products bought only a 35 percent interest in the venture? D. Show how your answer in Part C would change if Vail Ventures received a 51 percent ownership stake in the Black Hawk Products venture for S5 million. Part B Now assume under the venture utopia scenario that, in addition to the S50 million cash inflow in year 5, there will be an annual SImillion preferred dividend (to be paid to Vail Venture Investors but not other equity investors). Vail Venture expects to receive this S1 million dividend under the venture utopia scenario in each of the five years that the Black Hawk investment will be