Assuming monetary benefits of an IS at $85,000 per year (5% inflation), one-time sunk developmental costs of $110,000, recurring expenses of $40,000 (same inflation), a discount rate of 10%, and a 5 year time frame: Determine the NPV of the costs and benefits, ROI, and B/E point. Show all formulas and work for full credit.
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Assuming monetary benefits of an IS at $85,000 per year (5% inflation), one-time sunk developmental costs of $110,000, recurring expenses of $40,000 (same inflation), a discount rate of 10%, and a 5 year time frame: Determine the
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- 1. Assuming monetary benefits of a construction project at $50,000 per year during year 1, 2, 3 and 5 (not year 4), one-time costs (initial investment) of $15,000, recurring costs of $35,000 per year (every year), a discount rate of 10 per cent, and a 5-year time horizon, calculate the net present value (NPV) of an information system's costs and benefits. Calculate the overall return on investment (ROI) of the project. During which year does break-even occur?. Use the NPV template provided (modify to suit your answer) and clearly display the NPV, ROI, and year in which payback occurs. Write a paragraph explaining whether you would recommend investing in this project based on your financial analysis. Explain your answer referring to the NPV, ROI and payback for this project. Discount Rate (10%) Year 0 - 1.0000 Year 1 - .9091 Year 2 - .8264 Year 3 - .7513 Year 4 - .6830 Year 5 - .6209Assuming monetary benefits of a construction project at $50,000 per year, one-time costs (initial investment) of $15,000, recurring costs of $35,000 per year, a discount rate of 10 per cent, and a 4-year time horizon, calculate the net present value (NPV) of an information system's costs and benefits. Calculate the overall return on investment (ROI) of the project. During which year does break-even occur? Use the NPV template provided (modify to suit your answer) and clearly display the NPV, ROI, and year in which payback occurs. Write a paragraph explaining whether you would recommend investing in this project based on your financial analysis. Explain your answer referring to the NPV, ROI and payback for this project. Discount Rate (10%) Year 0 - 1.0000 Year 1 - .9091 Year 2 - .8264 Year 3 - .7513 Year 4 - .6830Consider the following information about a project: Calculate the NPV assuming 10% discount rate Determine in which year will be the payback Calculate (ROI)?
- Perform a financial analysis for a project. Assume that the projected costs and benefits for this project are spread over four years as follows: Estimated costs are $300,000 in Year 1 and $ 75,000 each year in Years 2, 3, and 4. Estimated benefits are $0 in Year 1 and $110,000 each year in Years 2, 3, and 4. Use a 6 percent discount rate, and round the discount factors to two decimal places. What is the Return on Investment (ROI)? (Keep your answer in two decimal places. e.g. 46.59. Do not enter % symbol.)a. Compute annual rate of return, Pay back period b NPV using 14% discounts rate , Is the Project acceptable using this discount rate Compute NPV using 11% discounts rate. Is the Project acceptable using this discount rateCompute the Payback Period, Discounted Payback Period, Net Present Value, Internal Rate of Return, and Productivity Index of all four alternatives based on cash flow. use 10 percent for the cost of capital in the calculations. For the Payback Period and for the Discounted Payback Period, compute to the midyear points. ALL Information is in the PNGs!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
- Suppose a project with a 6% discount rate yields R5000 for the next three years. Annual operating costs amount to R1000 for each year, and the one time initial investment cost is R8000. a. Calculate the Net Present Value (NPV) of this project.b. Calculate the cost-benefit ratio for the project. c. Is the project acceptable? Motivate your answer.Suppose you are considering a project has an initial cost of $600 that has an ongoing benefit of $ 250. Further, there is an ongoing cost that is equal to $90, which increases by 10% each year ( compounding). Assume the project lasts 6 years. If the appropriate discount rate is 6%. Calculate: a) the Net Present Value = $ Blank 1 b) the Benefit Cost Ratio Blank 2 c) should the project be accepted or rejected? Explain your answer using the information from part a) and b). Answer = Blank 3 (accept/reject) provide your answers to two decimal places. Do not include any commas (,) "$" or "%" in your answers. Ensure you show all your working in your spreadsheet. (best show with excel)(4) Evaluate the ROI.
- Perform financial analysis for a project using the format discussed in the course. Assume the projected costs and benefits for this project are spread over four years as follows: Estimated costs are $130,000 in Year 1 and $15,000 each year in Years 2, 3, 4, and 5. Estimated benefits are $0 in Year 1 and $90,000 each year in Years 2, 3, 4, and 5. Use an 8% discount rate. Use the NPV template provided (modify to suit your answer) and clearly display the NPV, ROI, and year in which payback occurs. Write a paragraph explaining whether you would recommend investing in this project based on your financial analysis. Explain your answer referring to the NPV, ROI, and payback for this project.Perform a financial analysis for a project. Assume that the projected costs and benefits for this project are spread over 6 years as follows. Estimated costs are $1,100,000 in Year 0, and $50,000 each year in Years 1, 2, 3, 4, 5 and 6. Estimated benefits are $0 in Year 0, and $450,000 each year in Years 1, 2, 3, 4, 5 and 6. Use a 15% discount rate. Suppose the required payback period and discounted payback period are both 3 years. (1) Calculate the payback period (based on the original cash flows without discounting), and evaluate the project based on the payback method. (2) Calculate the discounted payback period (based on discounted cash flows), and evaluate the project based on the discounted payback method. (3) Evaluate the project using the NPV method, and explain whether you would recommend investing in this project.Perform a financial analysis of a project assuming that the projected costs and benefits for this project are spread over four years as follows: Estimated costs are $200,000 in Year 1 and $30,000 each year in Years 2,3 and 4. Estimated benefits are $0 in year 1 and $100,000 each year in Years 2,3 and 4. Use a 9 percentage, discount rate, round the discount factors to two decimal places. Create a table of financial template on the paper to calculate and clearly display the NPV, ROI and year in which payback occurs with the help of a graph. In addition, write a paragraph explaining whether you would recommend investing in this project, based on your financial analysis.