PART 1.
Perform a financial analysis for a project using the format provided in Figure 4-5 in the text. Assume the project costs and benefits for this project are spread over four years as follows: Estimated costs are $200,000 in Year 1 and $30,000 each year in Years 2, 3, and 4. Estimated benefits are $0 in Year 1 and $100,000 each year in Years 2, 3, and 4. Use a 9% discount rate, and round the discount factors to two decimal places. Create a spreadsheet to calculate and clearly display the NPV, ROI, and year in which payback occurs. Based on the financial analysis, please write a few lines on the spreadsheet explaining whether you would recommend investing in this project. (Tip: Use the spreadsheet format given, such that Year 0 is year 1 described above. So your spreadsheet should include columns for years 0, 1, 2, and 3.)
PART 2.
Develop an imaginary project charter for a web development project. Assume you are going to develop a website from scratch for a small retail business of your choosing. Assume the web site will include a home page with links to information about products and services. It will also include a bulletin board, chat room, and provide information about the company and how to contact people in the company. Assume you are a self-employed software developer and your client is the owner and founder of the business. The owner wants a copy of the charter to circulate among her employees so they can be made aware of the project and prepare to support it. You may use Table 4-1 in the text as a template for creating headings and organizing information in the charter.
