4. Perform a financial analysis for a project using the format provided in Figure 4-5. Assume the...
Question:
4. Perform a financial analysis for a project using the format provided in Figure 4-5. Assume the projected costs and benefits for this project are spread over four years as follows: Estimated costs are $200,000 in Year 1 and $30,000 each year in Years 2, 3, and4. Estimated benefits are $0 in Year 1 and $100,000 each year in Years 2, 3, and 4. Usea 9 percent discount rate, and round the discount factors to two decimal places. Create a spreadsheet (or use the business case financials template provided on the companion Web site) to calculate and dearly display the NPV, RDI , and year in which payback occurs. In add~ion, write a paragraph explaining whether you would recommend investing in this project, based on your financial analysis.
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