Perform a financial analysis for a project using the format provided in Figure 4-5. Assume that the projected cost are $300,000 in Year 1 and $40,000 each year in Years 2, 3, and 4. Estimated benefits are $0 in Year 1 and $120,000 each year in Years 2, 3 and 4. Use a 7% discount rate, and round the discount factors to two decimal places. Create a spreadsheet or use the business case financial 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.

(Also please specify the formulas according to the row and column given above. Thanks.)

B D E F H 7% Year 0 1 2 3 Total 4 40,000 0 300,000 40,000 40,000 0 120,000 120,000 120,000 120,000 1 Discount rate 2 Assume the project is completed in Year 0 3 4 Costs 5 Discount factor 6 Discounted costs 7 8 Benefits 9 Discount factor 10 Discounted benefits 11 12 Discounted benefits - costs 13 Cumulative benefits - costs 14 15 ROI 16 17 18 19 NPV Payback in Year 1 20