You are a project manager who has been asked to help select the next project your organization should work on. Given the following financial information for two projects: a. Which project would you recommend your organization to pursue and why? Explain/Support your answer using data from Financial Analysis tables. b. Which project provides the fastest payback and why? Financial Analysis for Project 1 Discount rate 8.00% Assume the project is completed in Year 0 Year 1 3 Total Costs 40,000 140,000 1.00 2 40,000 40,000 0.93 0.86 37,200 34,400 Discount factor 0.79 Discounted costs 140,000 31,600 243,200 Benefits 0 1.00 200,000 200,000 200,000 0.93 0.86 0.79 Discount factor Discounted benefits 0 186,000 172,000 158,000 516,000 Discounted benefits - costs Cumulative benefits -costs (140,000) 148,800 137,600 126,400 272,800 NPV (140,000) 8,800 146,400 272,800 ROI 112% Financial Analysis for Project 2 Discount rate 8.00% Assume the project is completed in Year 0 Year 0 1 Costs 40,000 140,000 1.00 0.93 Discount factor Discounted costs 40,000 130,200 Benefits Discount factor 40,000 100,000 1.00 0.93 40000 93,000 Discounted benefits Discounted benefits - costs. Cumulative benefits - costs ROI 41% 2 3 Total 50,000 30,000 50,000 0.86 43,000 0.79 23,700 236,900 50,000 200,000 0.86 0.79 43,000 158,000 334,000 (37,200) 134.300 (37,200) (37,200) 97,100 97,100 NPV