Time Value of Money calculations
BigiegAssignment 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:
- Calculate the net present value of the project
- Calculate the internal rate of return
- Calculate the payback period
- Calculate the discounted payback period
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.
Use the following file naming conventions:
MS Word: LastnameFirstInitial_M1_A3.doc
MS Excel: LastnameFirstInitial_M1_A3.Excel.xls
For example, if your name is John Smith, your document will be named SmithJ_M1_A3.doc ( and LastnameFirstInitial_M1_A3.Excel.xls)
By Wednesday, June 15, 2016, deliver your assignments to the M1: Assignment 3 Dropbox.
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: | 100 |
- 5 years ago
- 25
Purchase the answer to view it
- time_value_of_money_worksheet.xlsx
- time_value_of_money_calculations.docx
Purchase the answer to view it
Purchase the answer to view it
- calculations.xlsx
- time_value_of_money_calculations.docx
- Homework
- Sociology assignment-Summary Response #4
- FOR "JACK JONES" ONLY!!!!
- Quadratic equations may be solved by graphing, using the
- ETH 316 Ethics and Social Responsibility Week 5 DQ
- .
- Human Resources Management Methods
- see attached 777A1
- Assessment 1 - Literature Review - Kimwoods only
- Need back in 8 hours
Time Value of Money Calculations
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 …
8 years agoFIN430 M1A3 - Time Value of Money Calculations
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 …
5 years agoTIME VALUE OF MONEY
NOT RATEDTime 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 …
7 years agoAssignment 3: Time Value of Money Calculations
NOT RATEDThe 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 …
4 years agoA-Plus Writer- Time Value of Money Calculations
NOT RATEDThe 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 …
5 years agoTime Value of Money Calculations
NOT RATEDThe 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 …
5 years agoDr James Andrews
NOT RATEDAssignment 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 …
4 years agoTime Value of Money Calculations
NOT RATEDThe 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 …
4 years ago