Question 1: [3 points] Use MS Excel to develop cashflow table for the...

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Accounting

Question 1: [3 points]

Use MS Excel to develop cashflow table for the below projects.

Project 1:

Project 1 is an ERP Implementation project that will yield a possible annual 5% increase in sales on an annual basis and 5% reduction in labor costs also annually. Sales and labor figures are 500,000 JOD and 350,000 JOD respectively. The hardware setup cost of the project is estimated to be 25,000 JOD and Software Licenses are estimated to cost 150,000 JOD.

Project 2:

Is a Mobile App development project for on-line sales that will yield a 6% increase in sales on an annual basis and 5% reduction in labor costs also annually. Sales and labor figures are 500,000 JOD and 350,000 JOD respectively. The hardware setup cost of the project is estimated to be 38,000 JOD and Software development is estimated to cost 100,000.

Question 2: [5 points]

For the developed Cash Flow Table and considering a discount rate of 6%, calculate the values of NP, Payback Period, ROI, NPV and IRR.

Question 3: [2 points]

Select the appropriate project for management and justify your selection.

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