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please answer the following questions and show work: payback period: 5 year ROI without discount 5 year ROI with discount Part 1: Calculating NPV, Payback
please answer the following questions and show work:
Part 1: Calculating NPV, Payback Period and ROI 1. Create a table in Excel that calculates the following: a. The initial development costs for a system were $225,000. b. The maintenance cost is $5,000 a year for the first 2 years. i. $5,500 a year for years 3 and 4 ii. $7,000 for year 5 C. Expected benefits are valued at $55,000 by the end of year 1. i. $60,000 for year 2 ii. $70,000 for year 3 iii. $75,000 for year 4 iv. $80,000 for year 5 d. Calculate the cumulative NPV for all 5 years e. Calculate the Payback Period (years/days) f. Calculate ROI using a discount rate of 8% payback period:
5 year ROI without discount
5 year ROI with discount
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