For this, you need to change the discount percentage based on what you think the rate of
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For this, you need to change the discount percentage based on what you think the rate of interest would be for the cost of the investment.
You will also need to assume that your project will have costs and benefits for the next 2 to 3 years
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Financial Analysis for Project Name Created by: Date: Note: Change the inputs, shown in green below (i.e. interest rate, number of years, costs, and Discount rate Assume the project is completed in Year 0 Costs *********** Discount factor ************** Discounted costs Benefits Discount factor ******************* Discounted benefits Discounted benefits - costs ************** Cumulative benefits - costs 8.00% 0 140,000 40,000 1.00 0.93 140,000 0 1.00 0 Year 3 Total 40,000 40,000 0.86 0.79 37,200 34,400 31,600 243,200 200,000 200,000 200,000 0.93 0.86 0.79 186,000 172,000 158,000 516,000 (140,000) 148,800 137.600 126.400 (140,000) 8,800 146,400 272,800 ********** 272,800 NPV ********** Financial Analysis for Project Name Created by: Date: Note: Change the inputs, shown in green below (i.e. interest rate, number of years, costs, and Discount rate Assume the project is completed in Year 0 Costs *********** Discount factor ************** Discounted costs Benefits Discount factor ******************* Discounted benefits Discounted benefits - costs ************** Cumulative benefits - costs 8.00% 0 140,000 40,000 1.00 0.93 140,000 0 1.00 0 Year 3 Total 40,000 40,000 0.86 0.79 37,200 34,400 31,600 243,200 200,000 200,000 200,000 0.93 0.86 0.79 186,000 172,000 158,000 516,000 (140,000) 148,800 137.600 126.400 (140,000) 8,800 146,400 272,800 ********** 272,800 NPV **********
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Please refer to the revised table using discount rate of 6 The initial investment is 120000 which in... View the full answer
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