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can you answer this ASAP please and thanks. Fal 2020 - Word Search Mailings Review View Help EEE 211 el et 1 Normal 1 No

can you answer this ASAP please and thanks. image text in transcribed
Fal 2020 - Word Search Mailings Review View Help EEE 211 el et 1 Normal 1 No Spac... Heading 1 Heading 2 Title Subtitle Subtle 1. Paragraph Styles A for-profit university is evaluating a project to launch an online Executive MBA Program. The project will last three years. The project requires an investment in software that costs $2,700,000. The software will be purchased in year and depreciated straight line to zero over the 3-year period. At the end of three years, it is assumed that the software will have a salvage value of $100,000. The Executive MBA Program will take students one year to complete. Tuition is $58,000 per student. Enrollment is expected to be as follows: 30 students in year 1, 40 students in year 2, and 50 students in year 3. The program will require an investment in NWC (mostly antivirus software and computer hardware) estimated at 6% of tuition revenue with full recovery at the end of the project. Each year, total faculty and staff salaries for the program are estimated to be $300,000 Assume the university's tax rate=0.3 and wace -10%. Calculate FCFs for each year of the project and determine the NPV. Should the university launch the program? 0 1 2. 3 Capital Spending Software (1/Salvage (-) Total Capital Spending NWC Change in NWC (*/Recovery (-) Sales - Tuition Revenue Costs - Faculty and Staff Salaries Depreciation OCF FCF Discounted FCF at wace -10% NPV pri

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