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1 . Perform financial analysis for a project using the formats provided in Figure 4 - 4 , Figure 4 - 5 and Figure 4

1. Perform financial analysis for a project using the formats provided in Figure 4-4, Figure 4-5 and Figure 4-6. Assume the projected costs and benefits for this project are spread over four years as follows: Estimated costs are $170,000 in Year 0 and 50,000 each year in Years 1,2, and 3. estimated benefits are $0 in Year 0 and $180,000 each year in Years 1,2, and 3. Assume that costs and benefits are estimated at the beginning of the year. Use a 7.5 percent discount rate, and round the discount factors to two decimal places to do the following: 1) Calculate NPV using Excel NPV formula in a spreadsheet (similar to Fig 4-4, page 163).2) Create a spreadsheet (similar to Fig 4-5, page 164) to calculate NPV, ROI, and payback period. 3) Show using a chart (similar to Fig 4-6, page 166) in which year the payback occurs. In addition, 4) write a paragraph explaining whether you would recommend investing in this project, based on your financial analysis. (Be sure to show all computations using formula in Microsoft Excel)

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