Instructions

Complete Exercise $2\mathrm{.}1$ in Chapter $2$ of the text. Be sure to include an Excel worksheet with your assignment. Perform a financial analysis for a project using the format provided in Figure $2-5.$ Assume the projected costs and benefits for this project are spread over $4$ years as follows:

Estimated costs are $$100,000$ in Year $1$ and $$25,000$ each year in Years $2,3,$ and $4.($Hint: Just change the years in the template you will use below from $0,1,2,3,$ and $4$ to $1,2,3,$ and $4.$ The discount factors will automatically be recalculated.$)$ Estimated benefits are $$0$ in Year $1$ and $$80,000$ each year in Years $2,3,$ and $4.$ Use an $8\%$ discount rate. Use the Financial Analysis $($Business Case Financials template$)$ located in this module to calculate and clearly display the NPV$,$ ROI, the year in which payback occurs, and assumptions. In addition, write a paragraph explaining whether you would recommend investing in this project based on your financial analysis.

This assignment is due to the assignment submission folder by $11$:$59$ PM CT five days after class. You will submit an Excel spreadsheet which includes:

Assumptions written out directly under the table

Written paragraph of your analysis