​​​ This is a graded exercise. Please make sure to follow the instructions carefully, as an evaluator will be giving you feedback on your submission. You must submit your report as a file. Sara's Cake Company has gotten an offer from a grocery store to open up a satellite location inside the bakery of the store. You are hired as a consultant to look at the feasibility of this investment. You need to explain to management what the time value of money is in this context. Write a 2-3 page report in which you will do the following. Write the paper in APA format. In the first part, go into detail explaining the time value of money. You also need to cover the net present value (NPV) and internal rate of return (IRR). Define each and explain how to do each method of valuation. Lastly, explain why it is important to use these methods when looking at a new project. In the second part of the report, you need to go through the following numbers to calculate the NPV and IRR of the satellite location. The proposal contract from the grocery store states that it will charge her $2000 rent per month. Her gross profit per cake (aside from rent) is $7 per cake. The grocery store will buy 500 cakes per month. The lease will be for 5 years, and it will cost Sara $25,000 to build the mini bakery room out. Sara's cost of capital is 6%.