1. Perform a nancial analysis for a project using the format discussed in course. Assume the projected costs and benefits for this project are spread over four years as follows: Estimated costs are $300,000 in Year 1 and $15,000 each year in Years 2, 3, and 4. Estimated benets are $0 in Year 1 and $220,000 each year in Years 2, and 4. No benefit in year 3. Use an 8% discount rate. Calculate and clearly display the NPV, ROI, and year in which payback occurs.

Discount factor

Year 1 0.93

Year 2 0.86

Year 3 0.79

Year 4 0.74

2. Create a weighted scoring model to determine which project to select. Assume the criteria are cost, strategic value, risk, and nancials, with weights of 25%, 40%, 5%, and 30%, respectively. Enter values for Project I as 90, 70, 85, and 50; Project 2 as 75, 80, 90, and 70; and Project 3 as 80 for each criterion. Use the weighted scoring model discussed in lecture material, create the model, calculate the weighted score, and graph the results. Which project would you select? Why?

Submit both exercises in one file Excel that contains both answer.