The world’s Largest Sharp Brain Virtual Experts Marketplace Just a click Away
Levels Tought:
Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 398 Weeks Ago, 2 Days Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Assignment 3: Time Value of Money Calculations
The IT department has requested an update in its server population. This upgrade is required to maintain a competitive position. The CEO has asked that you evaluate the project and submit a recommendation to her, in terms of whether the company should move forward with this request. The calculated value of the project is a reduction of expenses, including power and replacement costs, as shown in Table-1:
Year |
Decrease in Expenses |
| 1 | $30,000.00 |
| 2 | $100,000.00 |
| 3 | $120,000.00 |
| 4 | $100,000.00 |
| 5 | $30,000.00 |
Assume the impact after five years to be immeasurable. The cost of capital to the firm is currently 8% and the cost of the project today is $286,000.
Required:
Submit an Excel file with your calculations, and a 2-to-5-page paper that explains the calculations and provides your final assessment and decision. Justify your recommendations. The paper must be submitted as a Word document and it must follow APA style guidelines
Â
Â
| Assignment 3 Grading Criteria | Maximum Points |
| Calculated the NPV of the project correctly, explaining the results clearly | 20 |
| Calculated the IRR of the project correctly, explaining the results clearly | 20 |
| Calculated the Payback Period of the project correctly, explaining the results clearly | 20 |
| Calculated the Discounted Payback Period of the project correctly, explaining the results clearly | 20 |
| Synthesized an effective, well-reasoned recommendation for improvement. | 12 |
| Used correct spelling, grammar, and punctuation and followed APA style guidelines. | 8 |
| Total: |
Hel-----------lo -----------Sir-----------/Ma-----------dam-----------Tha-----------nk -----------You----------- fo-----------r u-----------sin-----------g o-----------ur -----------web-----------sit-----------e a-----------nd -----------acq-----------uis-----------iti-----------on -----------of -----------my -----------pos-----------ted----------- so-----------lut-----------ion-----------.Pl-----------eas-----------e p-----------ing----------- me----------- on-----------cha-----------t I----------- am----------- on-----------lin-----------e o-----------r i-----------nbo-----------x m-----------e a----------- me-----------ssa-----------ge -----------I w-----------ill----------- be-----------