Prepare the financial section of a business case for the Cloud-Computing Case that is listed above this assignment in Canvas. Assume that this project will take eight months to complete (in Year 0) and will cost $600,000. The costs to implement some of the technologies will be $300,000 for year one and $200,000 for years two and three. Estimated benefits will start in year 1 at $400,000 and will be $600,000 for years 2 and 3. There is no benefit in year 0. Use the business case spreadsheet template (business_case_financials.xls) template provided below this assignment in Canvas to calculate the NPV, ROI, and the year in which payback occurs. Assume a 7 percent discount rate for the template. notes* Payback occurs in the first year that there is a positive value for cumulative benefits - costs. (*Negative values are presented in parenthesis) What I have so far is attached I need to make it so Pay back occurs in year 3 where there is positive cumulative benefits - costs.
Prepare the financial section of a business case for the Cloud-Computing Case that is listed above this assignment in Canvas. Assume that this project will take eight months to complete (in Year 0) and will cost $600,000. The costs to implement some of the technologies will be $300,000 for year one and $200,000 for years two and three. Estimated benefits will start in year 1 at $400,000 and will be $600,000 for years 2 and 3. There is no benefit in year 0. Use the business case spreadsheet template (business_case_financials.xls) template provided below this assignment in Canvas to calculate the NPV, ROI, and the year in which payback occurs. Assume a 7 percent discount rate for the template. notes* Payback occurs in the first year that there is a positive value for cumulative benefits - costs. (*Negative values are presented in parenthesis) What I have so far is attached I need to make it so Pay back occurs in year 3 where there is positive cumulative benefits - costs.
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
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Prepare the financial section of a business case for the Cloud-Computing Case that is listed above this assignment in Canvas. Assume that this project will take eight months to complete (in Year 0) and will cost $600,000. The costs to implement some of the technologies will be $300,000 for year one and $200,000 for years two and three. Estimated benefits will start in year 1 at $400,000 and will be $600,000 for years 2 and 3. There is no benefit in year 0. Use the business case spreadsheet template (business_case_financials.xls) template provided below this assignment in Canvas to calculate the
What I have so far is attached
I need to make it so Pay back occurs in year 3 where there is positive cumulative benefits - costs.
Transcribed Image Text:1
Financial Analysis for Cloud Computing Project
2 Created by: Katie Heaslet
Date:05/30/2022
Note: Change the inputs, shown in green below (i.e. interest rate, number of years, costs, and benefits). Be sure to double-
3 check the formulas based on the inputs.
4
5 Discount rate
6
7 Assume the project is completed in Year 0
-8
9 Costs
10 Discount factor
11 Discounted costs
12
13 Benefits
14 Discount factor
15 Discounted benefits
16
17 Discounted benefits - costs
18 Cumulative benefits - costs
19
20 ROI
21
22 Assumptions
23 Enter assumptions here
24
25
26
27
8.00%
0
600,000
1.00
600,000
0
280373.83
0
(600,000)
(600,000)
14%
Year
1
300,000
0.93
280,374
400,000
0.93
373,832
93,458
(506,542)
Payback in Year 1
2
200,000
0.87
174,688
600,000
0.87
524,063
349,375
(157,167)
3 Total
200,000
0.82
163,260
600,000
0.82
489,779
326,519
169,353
1,218,321
1,387,674
169,353 NPV
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