problem: Perform a financial analysis for a project using the format provided. Suppose the projected costs & benefits for this project are spread over 4 years as follows: Estimated costs are 100,000 dollar in Year 1 & $25,000 each year in Years 2, 3, & 4. Estimated benefits for $0 in Year 1 and $80,000 each year in Years 2, 3, and 4. Use an 8 percent discount rate. [Make a template like the attachment or use the template; however, just remember to use the numbers given in the assignment] to compute & clearly display the NPV, ROI, & year in which payback occurs. In addition, make a paragraph describeing whether you would recommend investing in this project, based on your financial analysis.
Financial Analysis for Project Name

Discount rate

8%






Assume the project is completed in Year 0



Year





0

1

2

3

Total


Costs

100

100

100

100



Discount factor

1.00

0.93

0.86

0.79



Discounted costs

100

93

86

79

358


Benefits

0

200

200

200



Discount factor

1.00

0.93

0.86

0.79



Discounted benefits

0

185

171

159

515


Discounted benefits  costs

(100)

93

86

79


NPV

Cumulative benefits  costs

(100)

(7)


158




44%







Payback before Year X




Assumptions






