Assignment 3: Time Value of Money Calculations
The 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:
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 $286000.Required:
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.
Use the following file naming conventions:MS Word: LastnameFirstInitial_M1_A3.docMS Excel: LastnameFirstInitial_M1_A3.Excel.xls
For example if your name is John Smith your document will be named SmithJ_M1_A3.doc ( and LastnameFirstInitial_M1_A3.Excel.xls)
ByWednesday March 29 2017 deliver your assignments to theM1: Assignment 3 Dropbox.