(Direction) Perform a financial analysis for a project using the format provided. Assume that the projected costs and benefits for this project are spread over four years as follows: Estimated costs are $200,000 in Year 1 and $30,000 each year 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 10 percent discount rate, and round the discount factors to two decimal places. Create a spreadsheet or use the business case financials template on the companion website to calculate and clearly display the NPV, ROI, and year in which payback occurs. In addition, write a paragraph explaining whether you would recommend investing in this project, based on your financial analysis (*write the paragraph in the excel document that you downloaded).

• For the calculation of discount factor, start Year 1.

10.00% Year 2 3 4 Total 30,000 30,000 30,000 200,000 5 Discount rate 6 7 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 Discounted benefits - costs 19 20 ROI 21 PAYBACK 22 0 100,000 100,000 100,000 NPV