Question: (a) Using a format similar to spreadsheet in this chapter, develop a spreadsheet that summarizes this project's cash flow, assuming a 5-year useful life after

(a) Using a format similar to spreadsheet in this chapter, develop a spreadsheet that

summarizes this project's cash flow, assuming a 5-year useful life after the project

is developed. Compute the present value of the cash Nows, using an interest rate of

9%.

(b) What is the NPV for this project?

(d) What is the break-even point?

(e) Should this project be accepted by the approval committee?

(a) Using a format similar to spreadsheet in this

Hershcy is working to develop a preliminary cost-benelit analysis for a new clicntserver system. She has identified a number of cost factors and values for the new system, summarized in the following tables. Development Costs-New Hardware and Sinftwara 2/ form The benefits of the new system are expected to come from two sources: increased sales and lower inventory levels. Sales are expected to increase by $30,000 in the first year of the system's operation and will grow at a rate of 10% cach year thereafter. Savings from lower inventory levels are expected to be $15,000 per year for each year of the project's life

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