Erica BD1 15 KMFORXi Lea 41 X Microsoft PowerPoint - PMIT L: X Course Hero x x Google Translate X + -) C soul2.hkuspace.hku.hk/pluginfile.php/4530654/mod_resource/content/1/PMIT%20L2_Project%20Selection%20%20Scope%20Management.pdf RAHit YouTube Google Translate Learner Portal AWS WhatsApp xX N Netflix HDIT Course Hero Grammarly Microsoft PowerPoint - PMIT L2_ Project Selection_Scope Definition.ppt - Co... 16 / 32 101% NPV Example - JWD Consulting Discount rate 8% Multiply Assume the project is completed in Year 0 Year 0 2 3 by the Total Costs 140,000 40,000 40,000 40,000 discount Discount factor 0.93 0.86 0.79 factor each Discounted costs 140,000 37,200 34,400 31,600 243,200 year, then Benefits 0 200,000 200,000 200,000 subtract Discount factor 1 0.93 0.86 0.79 costs from Discounted benefits 0 186,000 172,000 158,000 516,000 cumulative Discounted benefits - costs (140,000) 148,800 137,600 126,400 272,800 NPV benefits to Cumulative benefits - costs (140,000) 8,800 146,400 272,800 get NPV. ROI 112% Payback In Year 1 Note: Year 0 is not discounted 16BDMF Om: n ACGP... - Exx - HAMit - Eiffel (Eng Mac E 3 14 Times New... v 12 AA Aa Ap ab A A VEV EEA 21 AaBbCcDdE AaBbCcDdEe AaBbCcDdEe AaBbCcDdl BIUvab X X|ALAA PJX I Exercise 1 - Financial Analysis I Suppose Tom has made the following costs and benefits estimation for the project: One-time Costs: . Hardware - 100 laptop computers at $6,000 each . Software - Basic office software at $2,000 per laptop On-going costs: . Hardware maintenance - 12% of purchase cost of laptop PETU TH Benefits: Savings due to reduced usage of computer lab - $50,000 per year . Increased no. of students - $250,000 per year Assume that the discount rate is 9%, and the projection is for 5 years. Calculate the NPV, ROI and Payback Period for this project using Excel (try to use formula where possible). Exx. doc: 517 16 7 5 (15+16) . + 186%