Question: You are also proposing a second project with variable costs and returns. Assume that the project is expected to return monetary benefits of $ 5
You are also proposing a second project with variable costs and returns. Assume that the project is expected to return monetary benefits of $ the first year, and increasing benefits of $ until the end of project life year $ year $ year $ year $ year $ The project also has onetime costs of $ and variable recurring costs of year $ year $ year $ year $ year $ until the end of project life. The project has a discount rate of and a fiveyear time horizon.
a Create a costsbenefits analysis spreadsheet similar to Figure in Chapter
b Calculate net present value NPV of benefits for each year.
c Calculate net present value NPV of costs for each year.
d Calculate overall net present value NPV at the end of project life.
e Calculate overall return on investment ROI at the end of project life.
f Perform breakeven analysis BEA for the project.
g Calculate breakeven point for this project.
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