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.