question archive Using the table of costs and benefits below, answer the questions that follow
Using the table of costs and benefits below, answer the questions that follow
Subject:Computer SciencePrice: Bought3
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.
