Financial Analysis for Project Name

Created by:

Date:

Note: Change the inputs, such as discount rate, number of years, costs, and benefits. Be sure to double$-$check the

formulas based on the inputs. The discount factor is not rounded.Scenario $1$ Perform a financial analysis for a project using the format below. Complete the 'shaded' fields. Assume the projected costs and benefits for this project are spread over four years as follows: Estimated costs are $$100,000$ in Year $1$ and $$25,000$ each year in Years $2,3,$ and $4.($Hint: Just change the years in the template file from $0,1,2,3,$ and $4$ to $1,2,3,$ and $4.$ The discount factors will automatically be recalculated.$)$ Estimated benefits are $$0$ in Year $1$ and $$80,000$ each year in Years $2,3,$ and $4.$ Use an $8$ percent discount rate. Calculate and clearly display the NPV$,$ ROI, and year in which payback occurs. Explain whether you would recommend investing in this project based on your financial analysis. Note that the discount factors are not rounded to two decimal places in the template or solution.