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Paul has an opportunity to undertake a three-year project, t…

Paul has an opportunity to undertake a three-year project, that is expected to require investment of $50,000 in the first year, and $5,000 in the two subsequent years, with revenue of $30,000 in the second and third years. He wants to use cash flow analysis to determine Net Present Value (NPV) of this project. His organization is using a discount rate is 11% per annum – and the approximate Discount Factors are as given in the table.Paul wants to use $1000 as one unit for computations – for example, $50,000 would look like an investment of 50 in the table.Help Paul fill in the table below, and interpret the numbers. Discount rate 0.11         Discount factors are approximate (for a discount rate of 0.11)           Project 1     Year       0 1 2 3 Total Benefits (income) x0 x1 x2 x3 x4 Costs (investment) x5 x6 x7 x8 x9 Cashflow y0 y1 y2 y3               Discount factor 1 0.9 0.8 0.7   Discounted benefits z0 z1 z2 z3 z4 Discounted costs z5 z6 z7 z8 z9             Discounted benefits – discounted costs (profits in PV) n0 n1 n2 n3 n4 Cumulative benefits – cumulative costs (cum. profit in PV) n5 n6 n7 n8   x0 =  _______ x1 =  _______ x2 =  _______ x3 =  _______ x4 =  _______ x5 =  _______ x6 =  _______ x7 =  _______ x8 =  _______ x9 =  _______ y0 =  _______ y1 =  _______ y2 =  _______ y3 =  _______ z0 =  _______ z1 =  _______ z2 =  _______ z3 =  _______ z4 =  _______ z5 =  _______ z6 =  _______ z7 =  _______ z8 =  _______ z9 =  _______ n0 =  _______ n1 =  _______ n2 =  _______ n3 =  _______ n4 =  _______ n5 =  _______ n6 =  _______ n7 =  _______ n8 =  _______ Based on the NPV, if you were Paul, would you recommend undertaking this project (yes/no)? _______ Why/why not? _______

Alice, Bob, and Charlie are each advocating for different so…

Alice, Bob, and Charlie are each advocating for different software solutions to be purchased for their company. To reach a decision, they plan to conduct a weighted scoring analysis. They conduct preliminary financial analysis to estimate return on investment (ROI) for the different software. Alice’s preferred software has an ROI of 20%, Bob’s software has an ROI of 10%, and Charlie’s software has an ROI of 15%. In terms of usability, Bob’s software is the easiest to use straight out of the box, while Alice’s software has a steep learning curve. Charlie’s software falls somewhere in between. As expected, the software that is hardest to use offers the most features. While Bob’s software is the easiest to use, it has slightly fewer features than Charlie’s and significantly fewer than Alice’s, whose software provides the most features and functionalities. All three criteria are almost equally important for their decision. But they can’t decide whether ease of use or features should have higher weight. They do agree that ROI is more important than either of the other two. So, they decide on criteria weights of 30%, 30%, and 40%, ensuring weights sum to 100%. Next, they decide to assign scores of 25, 50, and 75 for low, medium, and high performance on each criteria. Help Alice, Bob, and Charlie fill out their weighted scoring sheet and decide on a software by interpreting it for them. General weighted scoring sheet: Criteria Weight (in %age) Option A Option B Option C Criteria 1 weight for criteria 1 score of option A on criteria 1 … … Criteria 2 weight for criteria 2 … … … Criteria 3 weight for criteria 3 … … score of option C on criteria 3 sum of all weights sum of (score * weight) on each criteria, for option A … … Fill in the table below: Criteria Weight Alice’s software Bob’s software Charlie’s software ROI item 1 item 2 item 3 item 4 Ease of use item 5 item 6 item 7 item 8 Features item 9 item 10 item 11 item 12 Totals: item 13 item 14 item 15 item 16 Item 1 = _______ item 2 =  _______ item 3 =  _______ item 4 =  _______ item 5 =  _______ item 6 = _______ item 7 = _______ item 8 =  _______ item 9 =  _______ item 10 =  _______ item 11 =  _______ item 12 =  _______ item 13 =  _______ item 14 =  _______ item 15 =  _______ item 16 =  _______ Based on the above numbers, whose software should be chosen? Alice, Bob, or Charlie? Write the name of the person:   _______