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Q.No.5 a. Perform a financial analysis for a project using the spreadsheet format provided in the class lecture. Assume the projected costs and benefits for
Q.No.5 a. Perform a financial analysis for a project using the spreadsheet format provided in the class lecture. Assume the projected costs and benefits for this project are spread over four years as follows: Estimated costs are $1,500,000 in year 1 and $300,000 each year in years 2, 3 and 4. Estimated benefits are $0 in year 1 and $1,000,000 each year in years 2, 3, and 4. Use a 10 percent discount rate. Create a financial analysis table to calculate and clearly display the net present value (NPV) and Return on investment (ROI). b. Write a paragraph explaining whether you would recommend investing in this project, based on your financial analysis. (Marks = 5+5)
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