Scenario $1$

Perform a financial analysis for a project using the format below. Complete the 'shaded' fields.

Assume the projected costs and benefits for this project are spread over four 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 file 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 $8$ percent discount rate.

Calculate and clearly display the NPV$,$ ROI, and year in which payback occurs.

Explain whether you would recommend investing in this project based on your financial analysis.

Note that the discount factors are not rounded to two decimal places in the template or solution.