1. (1 % ) Estimate the NPV, ROI, and payback period for the XYZ project using...

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Finance

1.     (1 % ) Estimate theNPV, ROI, and payback period for the XYZ project using theinformation below. Your results should look similar to Figures 2-4through 2-6 on pp. 46-47. Use the “business case financials”template. Type your name on the spreadsheet, and type anycomments/answers directly on the spreadsheet. Be sure to change theformatting to display one decimal place for the discount rate andROI and properly note the year of payback (not Year X).
a.     Estimated costs for the XYZ projectare $250,000 in year 0 and $50,000 each in years 1, 2, and 3.Estimated benefits are $0 in year 0 and $175,000 each year in years1, 2 and 3. Show the results (entire spreadsheet showing NPV, ROI,and year in which payback occurs) for a discount rate of 5.0%.Scoring: correct NPV, ROI, and payback year, 2 pts each, correctnumber and other formatting, 2 pts) (8 points)
b.     Would you recommend doing thisproject based on the NPV, ROI, and payback? Why or why not? Be sureto type your response directly on the firsttab of the worksheet. (2 pts)
2.     (0.5 %) You want toestimate how many years it will take to pay back the money you havespent earning a bachelor’s degree. Hint Table and Figure similar toFigure 2-7 on page 49.
a.     Assume your costs were $40,000 peryear for four years (years 1, 2, 3, and 4) by paying for collegeand not working as many hours, and your after-graduation benefitswere $15,000 per year for the next 30 years by getting a betterjob. Ignoring the time value of money, taxes, etc., in what yearwill you pay back for your college? (Hint: Find the year where thecumulative cash flow is equal to zero.)
b.     Be sure to type your responsedirectly on the second tab of theworksheet with your results and how you calculated them.
3.     (0.5 %) Prepare aweighted scoring model (table andchart similar to Figure 2-8 on p. 51) based on thefollowing data, using the template with that name. Your company istrying to decide which of five building locations to build on. Besure to type your response directly on the thirdtab of the worksheet. Make sure you add DATA LABELSto your charts.
a.     The main criteria and their weightsare as follows: Cost 35%; Location 20%, Taxes 10%, LocalGovernmental Laws 25%, and Local Labor Rates 10%.
b.     The ratings for Location 1 are 75,85, 50, 40, and 80. The ratings for Location 2 are 90, 60, 70, 55,and 30. The ratings for Location 3 are 60, 50, 70, 80, and 90. Theratings for Location 4 are all 65. The ratings for Location 5 are70, 40, 90, 65, and 90.
c.     Find the weighted score for eachproject (3 points) and describe which one you wouldrecommend and why (1 point) on thespreadsheet. Note: Check/adjust the formulas to make sure they arecorrect. (4 points)

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4.3 Ratings (1112 Votes)

1a Present valuePV of cash flowcashflow1iN idiscount rate5005 NYear of cash flow Yearwise cashflow and PV of net cash flows are given below N A B C DABC E FD105N Year Initial cost Annual benefit Annual cost Net Cash flow Cumulative Cash flow PV of Net Cash flow 0 250000 250000 250000 250000 1 175000 50000 125000 125000 119047619 2 175000 See Answer

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1. (1 % ) Estimate theNPV, ROI, and payback period for the XYZ project using theinformation below. Your results should look similar to Figures 2-4through 2-6 on pp. 46-47. Use the “business case financials”template. Type your name on the spreadsheet, and type anycomments/answers directly on the spreadsheet. Be sure to change theformatting to display one decimal place for the discount rate andROI and properly note the year of payback (not Year X).a. Estimated costs for the XYZ projectare $250,000 in year 0 and $50,000 each in years 1, 2, and 3.Estimated benefits are $0 in year 0 and $175,000 each year in years1, 2 and 3. Show the results (entire spreadsheet showing NPV, ROI,and year in which payback occurs) for a discount rate of 5.0%.Scoring: correct NPV, ROI, and payback year, 2 pts each, correctnumber and other formatting, 2 pts) (8 points)b. Would you recommend doing thisproject based on the NPV, ROI, and payback? Why or why not? Be sureto type your response directly on the firsttab of the worksheet. (2 pts)2. (0.5 %) You want toestimate how many years it will take to pay back the money you havespent earning a bachelor’s degree. Hint Table and Figure similar toFigure 2-7 on page 49.a. Assume your costs were $40,000 peryear for four years (years 1, 2, 3, and 4) by paying for collegeand not working as many hours, and your after-graduation benefitswere $15,000 per year for the next 30 years by getting a betterjob. Ignoring the time value of money, taxes, etc., in what yearwill you pay back for your college? (Hint: Find the year where thecumulative cash flow is equal to zero.)b. Be sure to type your responsedirectly on the second tab of theworksheet with your results and how you calculated them.3. (0.5 %) Prepare aweighted scoring model (table andchart similar to Figure 2-8 on p. 51) based on thefollowing data, using the template with that name. Your company istrying to decide which of five building locations to build on. Besure to type your response directly on the thirdtab of the worksheet. Make sure you add DATA LABELSto your charts.a. The main criteria and their weightsare as follows: Cost 35%; Location 20%, Taxes 10%, LocalGovernmental Laws 25%, and Local Labor Rates 10%.b. The ratings for Location 1 are 75,85, 50, 40, and 80. The ratings for Location 2 are 90, 60, 70, 55,and 30. The ratings for Location 3 are 60, 50, 70, 80, and 90. Theratings for Location 4 are all 65. The ratings for Location 5 are70, 40, 90, 65, and 90.c. Find the weighted score for eachproject (3 points) and describe which one you wouldrecommend and why (1 point) on thespreadsheet. Note: Check/adjust the formulas to make sure they arecorrect. (4 points)