Based on the given table please solve the following :

 Write  paragraph explaining whether you would recommend investing in this project, based on  financial analysis for given table above.

Determine the payback in which year (If possible)
Explain the situation of  project. (over, under, behind the budget). Write the interpretation of your values.

 

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Project 1 Period number Benefits Costs Benefits- Costs Discount factor Benefits (Discounted) Costs (Discounted) Benefits- Costs (Discounted) Cumulative (Benefits- Costs) Discount rate ROI Year 1 0 0 300000 -300000 1 0 300000 -300000 -300000 0.07 -22.2372346 Year 2 1 120000 40000 80000 Year 3 2 120000 40000 37383.1775 80000 Year 4 3 120000 40000 80000 0.934579439 0.873438728 0.816297877 112149.5327 104812.6474 97955.74523 314917.925 TOTAL 34937.54913 32651.91508 404972.642 74766.35514 69875.09826 65303.83015 -90054.7164 -225233.645 -155358.547 -90054.7164 Project 1 Period number Benefits Costs Benefits- Costs Discount factor Benefits (Discounted) Costs (Discounted) Benefits- Costs (Discounted) Cumulative (Benefits- Costs) Discount rate ROI Year 1 0 0 300000 -300000 1 0 300000 -300000 -300000 0.07 -22.2372346 Year 2 1 120000 40000 80000 Year 3 2 120000 40000 37383.1775 80000 Year 4 3 120000 40000 80000 0.934579439 0.873438728 0.816297877 112149.5327 104812.6474 97955.74523 314917.925 TOTAL 34937.54913 32651.91508 404972.642 74766.35514 69875.09826 65303.83015 -90054.7164 -225233.645 -155358.547 -90054.7164

Answer rating: 100% (QA)

ANSWER Based on the financial analysis of the project the total costs are estimated to be 404972642 and the total benefits are estimated to be 3149179... View the full answer