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 Assignment OverviewType: Individual ProjectUnit:  Modeling DecisionsDue Date:  Wed, 10/11/17Grading Type: NumericPoints Possible:  100Points Earned:  0Deliverable Length:  8-10 slides with presenter notesView objectives for this assignmentGo To:

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Assignment Details

Assignment Description

Your manager comes to you and says that your department has been offered the chance to work on 2 specific projects. Unfortunately, your manager does not know what to do based on the available organizational budget. Prepare a PowerPoint presentation (with presenter notes) that shows if the project should be done. To support whether the project should be done, calculate and use the net present value (NPV). Use the following information:

  • Project costs $420,000 upfront.
  • Current yearly interest rate is 10%.
  • Project payouts will be Year 1, Year 2, Year 3, and Year 4, as follows: 
    • Yr. 1: $110,000
    • Yr. 2: $121,000
    • Yr. 3: $133,100
    • Yr. 4: $146,410

Your presentation must include the following:

  • The NPV of the project
  • A recommendation of either accepting the project or saying the money should be invested in another endeavor

Please submit your assignment.

For assistance with your assignment, please use your text, Web resources, and all course materials.

    • 9 years ago
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