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.

Please explain in detail. Thanks.

Figure 4-5. JWD Consulting NPV Example Discount rate 8% Assume the project is completed in Year 0 Year 1 2 3 Total Costs 140,000 40,000 40,000 40,000 Discount factor 0.93 0.86 0.79 Discounted costs 140,000 37,200 34,400 31,600 243,200 0 1 Benefits Discount factor Discounted benefits 0 200,000 200,000 200,000 1 0.93 0.86 0.79 0 186,000 172,000 158,000 516,000 Discounted benefits - costs (140,000) 148,800 137,600 126,400 272,800 NPV Cumulative benefits - costs (140,000) 8,800 146,400 272,800 ROI 112% Payback In Year 1