Question
Perform a financial analysis for a project using the format provided in Figure 4-5 in the text. Assume the project costs and benefits for this
Perform a financial analysis for a project using the format provided in Figure 4-5 in the text. Assume 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% discount rate, and round the discount factors to two decimal places. Create a spreadsheet to calculate and clearly display the NPV, ROI, and year in which payback occurs. Based on the financial analysis, please write a few lines on the spreadsheet explaining whether you would recommend investing in this project. (Tip: Use the spreadsheet format given and limit the table to 4 years.)
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