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Evaluate the financial impact of a new digital transformation project at IBM using NPV, IRR, and payback period methods. Investment Components Initial Investment ($) Annual

Evaluate the financial impact of a new digital transformation project at IBM using NPV, IRR, and payback period methods.

Investment Components

Initial Investment ($)

Annual Cash Flows ($)

Project Life (years)

Discount Rate (%)

Digital Transformation

350,000,000

90,000,000

5

6%

Requirements:

Calculate NPV and IRR based on projected cash flows and discount rate.

Determine the payback period for the investment.

Conduct a sensitivity analysis to assess the impact of changes in digital transformation costs.

Provide recommendations on whether to proceed with the digital transformation project.

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