Question: Perform an NPV financial analysis for the mentioned project using the manual method. Assume that the projected costs and projected benefits for this project are
Perform an NPV financial analysis for the mentioned project using the manual method. Assume that the projected costs and projected benefits for this project are spread over three years as follows:
-The estimated costs are $85,000 in Year 0 and $30,000each year in Years 1, and 2.
-The estimated benefits are $0 in Year 0 and $90,000 each year in Years 1, and 2. Use 10 percent discount rate, and round the discount factors to two decimal places.
You must calculate the NPV manually and show your work using a table.
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