Time Value of Money Calculations
Time Value of Money Calculations
Assignment 3: Time Value of Money CalculationsThe 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 projectCalculate the internal rate of returnCalculate the payback periodCalculate 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
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
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Time Value of Money Calculations
Assignment 3: Time Value of Money CalculationsThe 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 projectCalculate the internal rate of returnCalculate the payback periodCalculate 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
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
Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!Use Discount Code “Newclient” for a 15% Discount!NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.
Time Value of Money Calculations