Complete this assignment using Microsoft Excel and submit it below. Please submit it as a single file. Assignment Perform financial analysis for a project using the format provided in Figure 4-5 in the text. Assume the costs and benefits for this project are spread over four years as follows: • Estimated costs are $200,000 in Year 1 and $30,000 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. The discount factors should start with 0.92 in year 1.)
Complete this assignment using Microsoft Excel and submit it below. Please submit it as a single file. Assignment Perform financial analysis for a project using the format provided in Figure 4-5 in the text. Assume the costs and benefits for this project are spread over four years as follows: • Estimated costs are $200,000 in Year 1 and $30,000 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. The discount factors should start with 0.92 in year 1.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Plz do exactly what they ask in question take your time as u want but give me exact answer plz
Also at the end they said to creat a spreadsheet and write 2، 3 lines
Plz read question carefuly and do it plz (creat spread sheet to calculate and clearly display NPV , ) read the question statement plz
I need perfect answer plz ..
Transcribed Image Text:Present Value Analysis (3 of 4)
Discount rate
8%
Assume the project is completed in Year 0
0
Costs
Discount factor
Discounted costs
Benefits
Discount factor
Discounted benefits
Discounted benefits - costs
Cumulative benefits - costs
ROI
1
140,000 40,000
1
0.93
140,000 37,200
Year
2
3 Total
40,000
40,000
0.86
0.79
34,400 31,600 243,200
0 200,000 200,000 200,000
1
0.93
0.86
0.79
0 186,000 172,000 158,000 516,000
(140,000) 148,800 137,600 126,400 272,800+NPV
(140,000) 8,800 146,400 272,800
112%
Payback in Year 1
FIGURE 4-5 JWD Consulting net present value and return on investment example
Transcribed Image Text:Complete this assignment using Microsoft Excel and submit it below. Please submit it as a single file.
Assignment
Perform financial analysis for a project using the format provided in Figure 4-5 in the text. Assume the costs
and benefits for this project are spread over four years as follows:
• Estimated costs are $200,000 in Year 1 and $30,000 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.
The discount factors should start with 0.92 in year 1.)
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