Prepare the financial section of a business case for the Cloud-Computing Case that is listed above this assignment in Canvas. Assume that this project will take eight months to complete (in Year 0) and will cost $600,000. The costs to implement some of the technologies will be $300,000 for year one and $200,000 for years two and three. Estimated benefits will start in year 1 at $400,000 and will be $600,000 for years 2 and 3. There is no benefit in year 0.  Use the business case spreadsheet template (business_case_financials.xls) template provided below this assignment in Canvas to calculate the NPV, ROI, and the year in which payback occurs. Assume a 7 percent discount rate for the template. notes* Payback occurs in the first year that there is a positive value for cumulative benefits - costs. (*Negative values are presented in parenthesis) What I have so far is attached I need to make it so Pay back occurs in year 3 where there is positive cumulative benefits - costs.

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 35SP
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Prepare the financial section of a business case for the Cloud-Computing Case that is listed above this assignment in Canvas. Assume that this project will take eight months to complete (in Year 0) and will cost $600,000. The costs to implement some of the technologies will be $300,000 for year one and $200,000 for years two and three. Estimated benefits will start in year 1 at $400,000 and will be $600,000 for years 2 and 3. There is no benefit in year 0.  Use the business case spreadsheet template (business_case_financials.xls) template provided below this assignment in Canvas to calculate the NPV, ROI, and the year in which payback occurs. Assume a 7 percent discount rate for the template. notes* Payback occurs in the first year that there is a positive value for cumulative benefits - costs. (*Negative values are presented in parenthesis)

What I have so far is attached

I need to make it so Pay back occurs in year 3 where there is positive cumulative benefits - costs.

1
Financial Analysis for Cloud Computing Project
2 Created by: Katie Heaslet
Date:05/30/2022
Note: Change the inputs, shown in green below (i.e. interest rate, number of years, costs, and benefits). Be sure to double-
3 check the formulas based on the inputs.
4
5 Discount rate
6
7 Assume the project is completed in Year 0
-8
9 Costs
10 Discount factor
11 Discounted costs
12
13 Benefits
14 Discount factor
15 Discounted benefits
16
17 Discounted benefits - costs
18 Cumulative benefits - costs
19
20 ROI
21
22 Assumptions
23 Enter assumptions here
24
25
26
27
8.00%
0
600,000
1.00
600,000
0
280373.83
0
(600,000)
(600,000)
14%
Year
1
300,000
0.93
280,374
400,000
0.93
373,832
93,458
(506,542)
Payback in Year 1
2
200,000
0.87
174,688
600,000
0.87
524,063
349,375
(157,167)
3 Total
200,000
0.82
163,260
600,000
0.82
489,779
326,519
169,353
1,218,321
1,387,674
169,353 NPV
Transcribed Image Text:1 Financial Analysis for Cloud Computing Project 2 Created by: Katie Heaslet Date:05/30/2022 Note: Change the inputs, shown in green below (i.e. interest rate, number of years, costs, and benefits). Be sure to double- 3 check the formulas based on the inputs. 4 5 Discount rate 6 7 Assume the project is completed in Year 0 -8 9 Costs 10 Discount factor 11 Discounted costs 12 13 Benefits 14 Discount factor 15 Discounted benefits 16 17 Discounted benefits - costs 18 Cumulative benefits - costs 19 20 ROI 21 22 Assumptions 23 Enter assumptions here 24 25 26 27 8.00% 0 600,000 1.00 600,000 0 280373.83 0 (600,000) (600,000) 14% Year 1 300,000 0.93 280,374 400,000 0.93 373,832 93,458 (506,542) Payback in Year 1 2 200,000 0.87 174,688 600,000 0.87 524,063 349,375 (157,167) 3 Total 200,000 0.82 163,260 600,000 0.82 489,779 326,519 169,353 1,218,321 1,387,674 169,353 NPV
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