You are required to perform financial analysis for a potential
project during feasibility study. The projected costs and benefits
for the project are as follows:
Initial investment in the project is $300,000.
On-going costs per year is $40,000 from year 1 to year 3.
Expected benefits are $100,000 for year 1, $200,000 for year2,
and $300,000 for year 3.
Calculate the NPV (5 marks), ROI (3 marks) and Payback period (2
marks) for this project using analysis, using a 3-year projection,
i.e. from year 0 to year 3. Assume the discount rate is 6%. Show
your workings.
You are required to perform financial analysis for a potential project during feasibility study. The projected costs and
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