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MBA IT, Mater in Science and Technology
Devry
Jul-1996 - Jul-2000
Professor
Devry University
Mar-2010 - Oct-2016
Information Technology Evaluation and Implementation IÂ
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Unit IV Project 2Â
NPV and ROI Calculations CaseÂ
Using the NPV-ROI Spreadsheet Template provided, which covers three years, enter the following values to determine the net present value (NPV), ROI percentage, and in what year payback is achieved. Click here for a copy of the template.Â
NPV-ROI Spreadsheet Template:Â Â
ï‚· Discount Rate = 8.00% ï‚· Costs: Year 0 = $200,000; Year 1 = $20,000; Year 2 = $20,000; Year 3 = $20,000 ï‚· Benefits: Year 0 = 0; Year 1 = $100,000; Year 2 = $100,000; Year 3 = $100,000Â
Submit your completed spreadsheet along with comments explaining the NPV and ROI values that you came up with. Â
Course Textbook Â
Schwalbe, K. (2014). Information technology project management (Rev. 7th ed.). Boston, MA: Cengage Learning.  Â
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Financial Analysis for Project NameCreated by:Date:Discount rate1.00%Assume the project is completed in Year 0Year0123 TotalCosts5111Discount factor1.000.990.980.97Discounted costs51118Benefits0101010Discount factor1.000.990.980.97Discounted benefits010101029Discounted benefits - costs(5)99921NPVCumulative benefits - costs(5)41321ROI270%AssumptionsEnter assumptions hereInstructions: Change the inputs, shown in green below (i.e., interest rate, costs, andbenefts). Be sure to double-check the Formulas based on the inputs.
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