Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ASSIGNMENT 1. Perform a nancial analysis for a project using the format discussed in the course. Assume the projected costs and benefits for this project

ASSIGNMENT

1. Perform a nancial analysis for a project using the format discussed in the course. Assume the projected costs and benefits for this project are spread over five years as follows: Estimated costs are $130,000 in Year 1 and $25,000 each year in Years 2, 3, 4, and 5. Estimated benets are $0 in Year 1 and $75,000 each year in Years 2, 3, 4, and 5. Use an 12% discount rate. Use the NPV template provided (modify to suit your answer) and clearly display the NPV, ROI, and year in which payback occurs.

Write a paragraph explaining whether you would recommend investing in this project based on your nancial analysis. Explain your answer referring to the NPV, ROI and payback for this project.

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 10%, 40%, 20%, 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 or Word file) that contains both answer.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Research Methods

Authors: Emma Bell, Bill Harley, Alan Bryman

5th Edition

0198809875, 9780198809876

More Books

Students also viewed these General Management questions

Question

What is meant by micromanagement? Why is it such a managerial sin?

Answered: 1 week ago

Question

An improvement in the exchange of information in negotiations.

Answered: 1 week ago

Question

1. Effort is important.

Answered: 1 week ago