suppose the project will finish within 6 years (Starting from year 0). Follow your instructor instructions about the value of:
Discount Rate 8%
Cost for every year 20000
Benefits for every year 250000
Your task is to calculate the following:
Discount factor for every year.
Discounted Benefits for every year.
Discounted Cost for every year.
Discounted Benefits-Cost for every year
Cumulative Benefits – Cost
Calculate NPV
Calculate ROI
Determine the payback in which year (If possible).
Explain the situation of your project. (over, under, behind the budget). What your value means ?
