Assume the projected costs and benefits

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Perform a financial analysis for a project XY. Assume the projected costs and benefits for this project are spread over four years as follows: Estimated costs are $400,000 in Year 1 and $50,000 each year in Years 2, 3, and 4. Estimated benefits are $0 in Year 1 and $200,000 each year in Years 2, 3, and 4. Use a 9 percent discount rate, and round the discount factors to two decimal places. Create a spreadsheet to calculate and clearly display the following: • NPV • ROI • The year in which payback occurs. In addition, write a paragraph explaining whether you would recommend investing in this project, based on your financial analysis.

Reference no: EM131321155

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