Question

Perform a financial analysis for a project where the projected costs and benefits are spread over five years with the following data: Estimated costs are $100,000 in Year 1 and $25,000 each for years 2, 3, 4, and 5. Estimated benefits are $0 in Year 1 and $80,000 each for years 2, 3, 4, and 5. Use a discount rate of 8% • For layout see example (PDF format) in D2L, in the same module as this assignment.

needs to be dont like this excel sheet example all values must be filled in and in an excel sheet with formulas.

using the data procided all parameters in the excel table shown have to be calculated that excel sheet image is just an example and have to come up with the sams dable with the data procided in the first table

Answer 1

Calculation of PV Factor = 1/(1+r)^t
r = 8%
t = Year
	Year 1	Year 2	Year 3	year 4	Year 5	Total
Cost (A)	$ 100,000.00	$ 25,000.00	$ 25,000.00	$ 25,000.00	$ 25,000.00
Benefits (B)	$                   -	$ 80,000.00	$ 80,000.00	$ 80,000.00	$ 80,000.00
Discount Factor (C)= Calculated per above formula	0.9259	0.8573	0.7938	0.7350	0.6806
Present Value of Cost (D) = A x C	$    92,592.59	$ 21,433.47	$ 19,845.81	$ 18,375.75	$ 17,014.58	$   169,262.20
Present Value of Benefits (E) = B x C	$                   -	$ 68,587.11	$ 63,506.58	$ 58,802.39	$ 54,446.66	$   245,342.73
NPV (F) = Total of E - Total of D						$     76,080.53