Project Management “Calculating NPV, writing homework help

Problem #1: Feasibility Analysis

The purpose of this exercise is for each student to individually practice economic feasibility analysis via M.S. Excel.

Scenario: A company is trying to decide between two projects. Available data about the projects is shown below. Conduct an economic feasibility analysis (based on NPV, ROI and payback period) and recommend which project should be selected. The company can only invest in one project. You need to do this analysis in M.S. Excel (please show all calculations using formulas and make sure you professionally format your results). Cost of capital is 12%.

PROJECT A

Year

Investment

Revenue Streams

0

$250,000

1

$30,000

$125,000

2

$30,000

$120,000

3

$30,000

$100,000

4

$30,000

$100,000

5

$30,000

$100,000

6

$30,000

$100,000

PROJECT B

Year

Investment

Revenue Streams

0

$400,000

1

$50,000

$175,000

2

$50,000

$175,000

3

$50,000

$160,000

4

$50,000

$155,000

5

$50,000

$150,000

Notes:

  • Feasibility analysis must be done with M.S. Excel.
  • For each calculated result, there has to be an embedded formula.
  • Please plan to submit a very professional looking Excel document (use proper labels, colors, lines etc).
 
"Looking for a Similar Assignment? Get Expert Help at an Amazing Discount!"

Hi there! Click one of our representatives below and we will get back to you as soon as possible.

Chat with us on WhatsApp