Assignment:
Using the table of costs and benefits below, answer the questions that follow.
|
Year
|
Costs
|
Benefits
|
|
Year 0
|
1,000,000
|
20,000
|
|
Year 1
|
125,000
|
50,000
|
|
Year 2
|
25,000
|
100,000
|
|
Year 3
|
25,000
|
120,000
|
|
Year 4
|
25,000
|
140,000
|
|
Year 5
|
25,000
|
160,000
|
|
Year 6
|
25,000
|
180,000
|
|
Year 7
|
25,000
|
200,000
|
|
Year 8
|
25,000
|
220,000
|
|
Year 9
|
25,000
|
240,000
|
|
Year 10
|
25,000
|
260,000
|
|
Year 11
|
25,000
|
280,000
|
|
Year 12
|
25,000
|
300,000
|
|
Year 13
|
25,000
|
320,000
|
|
Year 14
|
25,000
|
340,000
|
|
Year 15
|
25,000
|
360,000
|
|
Year 16
|
25,000
|
380,000
|
|
Year 17
|
25,000
|
400,000
|
|
Year 18
|
25,000
|
420,000
|
|
Year 19
|
25,000
|
440,000
|
|
Year 20
|
25,000
|
460,000
|
|
Year 21
|
25,000
|
480,000
|
|
Year 22
|
25,000
|
500,000
|
|
Year 23
|
25,000
|
520,000
|
|
Year 24
|
25,000
|
540,000
|
|
Year 25
|
25,000
|
560,000
|
1. What is the NPV(Net Present Value) of the project? Assume a 15% discount rate and round your answer to the nearest whole dollar (e.g. $125,321).
2. What is the IRR(Internal Rate of Return) of the project? Round your answer to two decimal places (e.g. 15.80%).
3. What is the Simple ROI(Return on Investment) of the project?
4. Based on your calculations, should the project move forward? Why or why not?
Please submit a single Excel file with your answers. Please answer the questions directly in the Excel file.