NOTE: TYPE ANSWER ON COMPUTER DO NOT ATTACH PICTURE
Perform a Financial Analysis for a project XY.
Assume the projected costs and benefits for this project are spread over four years as follows:
• Estimated costs are $300,000 in Year 1 and $50,000 each year in Years 2, 3, and 4.
• Estimated benefits are $0 in Year 1 and $180,000 each year in Years 2, 3, and 4.
• Use a 9 percent discount rate, and round the discount factors to two decimal places.
Create a spreadsheet to calculate and clearly display the following:
• NPV
• ROI
• The year in which payback occurs.
In addition, write a paragraph explaining whether you would recommend investing in this project, based on your financial analysis.