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Estimate the NPV, ROI, and payback period for the XYZ project using the information below, Estimated costs for the XYZ project are $200,000 in
Estimate the NPV, ROI, and payback period for the XYZ project using the information below, Estimated costs for the XYZ project are $200,000 in year 0 and $50,000 each in years 1, 2, and 3. Estimated benefits are $0 in year 0 and $150,000 each year in years 1, 2 and 3. Calculate the following i) NPV, (3 marks) ii) ROI, (3 marks) iii) and year in which payback occurs for a discount rate of 6.5 %. (1 mark) Paragraph BI Discount Rate 6.5% Assume the Project started in year 0 Costs Discount Factor Discounted Costs Benefits Discount Factor Discounted Benefits Discounted Benefits - Costs Cumulative Benefits - costs ROI Pay Back Year 0 1 2|3 Total
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