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I need help please, information system technology project management. I need part (B) only from the picture above. 2. Perform a financial analysis for a
I need help please, information system technology project management.
I need part (B) only from the picture above.
2. Perform a financial analysis for a project using the format provided in Figure 4-5 in your textbook (attached business_case_financials template). Assume that the project costs and benefits for this project are spread over four years as follows: Estimated costs are $200,000 in Year 1 and $30,000 each year in Years 2, 3, and 4. Estimated benefits are $0 in Year 1 and $100,000 each year in Years 2, 3, and 4. Use a 9 percent discount rate, and round the discount factors to two decimal places. Using the attached business case financials template, calculate and clearly display the NPV, ROI, and year in which payback occurs. In addition, write a paragraph explaining whether you would recommend investing in this project, based on your financial analysis. a. Answers to questions on Task 1. b. Business case financial spreadsheet for Task 2 and paragraph explaining your recommendations for investing or not in the project. Sheet1 Sheet2 Sheet3 Financial Analysis for Project Name Created by: Date: Note: Change the inputs, shown in green below (i.e. interest rate, number of years, costs, and benefits). Be sure to double-check the formulas based on the inputs. Discount rate 8.00% Assume the project is completed in Year 0 0 Costs Discount factor Discounted costs 140,000 1.00 140,000 Year 1 2 40,000 40,000 0.93 0.86 37,200 34,400 3 Total 40,000 0.79 31,600 243,200 0 Benefits Discount factor Discounted benefits 1.00 200,000 0.93 186,000 200,000 0.86 172,000 200,000 0.79 158,000 0 516,000 272,800 NPV Discounted benefits - costs Cumulative benefits - costs -140,000 -140,000 148,800 8,800 137,600 146,400 126,400 272,800 ROI 112% Payback in Year 1 Assumptions Enter assumptions hereStep by Step Solution
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