Assignment 2 Please answer the following 3 questions and make sure to show all work. An answer alone is NOT sufficient. 1. I told John I want a 30% ROI or better on the estimates or else the project...

Assignment has 3 questions based on Project mangment Metrics


Assignment 2 Please answer the following 3 questions and make sure to show all work. An answer alone is NOT sufficient. 1. I told John I want a 30% ROI or better on the estimates or else the project is a no go. “Prove it to me in a business case John. Then we’ll run with your idea.” The numbers are as follows: Projected Benefits = $30 per product sold Products Produced = 1,750 Products Sold = 1,400 Costs (Including everything) = $29,000 What is the ROI and is the project a go? Show all work. Diane approaches you with a plan for a project. She says, “You are going to make a killing off this thing! You will make $500,000 in revenues in the next five years!” This isn’t your first rodeo. You know you want to see the Net Present Value (NPV) of those future cash flows before you decide the investment is worth it. So you say “I’m going to run the NPV on the figures with a discount rate of 8%, if it comes back positive we will move forward.” What do you find? Do you move forward, why or why not? What was the final NPV? Show all work. Total Investment = $500,000 Annual Cash Flows = $120,000 Discount Rate = 8% Time Periods = 5 Your team suggests making a new product. The net profit margin is $7.50 per unit. If the initial investment is $17,250, what is the breakeven point in terms of units? Show all work.