QUANTITATIVE. Fill in the following statements based on the below projectfinancial analysis.a. The Net Present Value isb. The Return on Investment isc. The project will break even (make back its costs) in Yeard. This projectCreated by: Praju ManageskiNote: Change the inputs, such as discount rate, number of years, costs, and benefits. Be sure toDiscount rateCostsDiscount factorDiscounted costsBenefitsDiscount factorDiscounted benefitsprofitable because the ROI and NPV are bothFinancial Analysis for Project GGUAssume the project is completed in Year 0Discounted benefits -costsCumulative benefits - costsROI5%10,0001.0010,00001.000(10,000)(10,000)16%00.952,0000.951,905Year00.9150000.914,5351,9054,535(8,095) (3,560)00.86.60000.865,1835,1831,62310,00011,6231,623NPV

Computation of NPV & ROI:a) NPV = 1,623b) ROI = 16%Formula reference for above table:

QUANTITATIVE. Fill in the following statements based on the below project financial analysis. a. The Net Present Value is b. The Return on Investment is c. The project will break even (make back its costs) in Year d. This project Created by: Praju Manageski Note: Change the inputs, such as discount rate, number of years, costs, and benefits. Be sure to Discount rate Benefits Discount factor Discounted benefits profitable because the ROI and NPV are both Financial Analysis for Project GGU 5% Assume the project is completed in Year 0 Costs Discount factor Discounted costs Discounted benefits - costs Cumulative benefits -costs ROI 10,000 1.00 10,000 0 1.00 0 (10,000) (10,000) 16% 0.95 2,000 0.95 1,905 Year 20 2 0.91 5000 0.91 4,535 1,905 4,535 (8,095) (3,560) 3 Total 0 0.86 6000 0.86 5,183 5,183 1,623 10,000 11,623 1,623 NPV

QUANTITATIVE. Fill in the following statements based on the below project financial analysis. a. The Net Present Value is b. The Return on Investment is c. The project will break even (make back its costs) in Year d. This project Created by: Praju Manageski Note: Change the inputs, such as discount rate, number of years, costs, and benefits. Be sure to Discount rate Benefits Discount factor Discounted benefits profitable because the ROI and NPV are both Financial Analysis for Project GGU 5% Assume the project is completed in Year 0 Costs Discount factor Discounted costs Discounted benefits - costs Cumulative benefits -costs ROI 10,000 1.00 10,000 0 1.00 0 (10,000) (10,000) 16% 0.95 2,000 0.95 1,905 Year 20 2 0.91 5000 0.91 4,535 1,905 4,535 (8,095) (3,560) 3 Total 0 0.86 6000 0.86 5,183 5,183 1,623 10,000 11,623 1,623 NPV

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 1CMA

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