PROBLEM - CAPITAL BUDGETING (40 POINTS)

I have a 5,200 square foot tenant space that I am trying to lease at one of our centers. Three tenants have expressed an interest in leasing the space. Two of the tenants require some upfront money from us to move in, while the third tenant does not. This third tenant, however, will not pay as much in rent as the other two. Details on the projected rents from the tenants and the amounts we are to invest upfront are shown below. Using any one of the 3 primary capital budgeting analysis methods (NPV, IRR and/or MIRR) you feel is best and most appropriate, evaluate the three tenants and tell me which of the three tenants I should pursue. My cost of capital is 9.0%. Be sure to show me how you arrived at your conclusion using the tools of Excel. You can use this spreadsheet to set up your calculations if you so desire. Print a formula page!

Tenant 1 - Fivebucks Coffee and TeaCost of Capital:9.0% Initial upfront cost:($100,000) Year 1 rents:$90,000 Year 2 rents:$95,000 Year 3 rents:$100,000 Year 4 rents:$105,000 Year 5 rents:$110,000 Tenant 2 - CheeseBurger King Initial upfront cost:($50,000) Year 1 rents:$85,000 Year 2 rents:$85,000 Year 3 rents:$85,000 Year 4 rents:$85,000 Year 5 rents:$85,000 Tenant 3 - Old McDonalds Initial upfront cost:$0 Year 1 rents:$70,000 Year 2 rents:$70,000 Year 3 rents:$75,000 Year 4 rents:$80,000 Year 5 rents:$80,000