First of all, need to use Excel answer questions within the text of the case.
1. Construct Economic Feasibility Workbook, Including the five different worksheets and all relevant information.
2. Calculate the internal rate of return and use this to find the breakeven point of the company.
3. Calculate the impact of changing costs on the feasibility of the project.
4. Compare project’s IRR to those expected in other projects.
After that, please answer Information specification questions.
A. If Management stipulates that the internal rate of return must be equal to or greater than the discount rate, is this project still justifiable.
B. Assuming the discount rate is 14 percent, how will eliminating an additional staff position of $32,500 affect the economic feasibility assessment?
C. Assume that the staff position mentioned in Question A is eliminated, the site preparation cost increases to $120,000, and the discount rate is 14 percent. What impact will these changes have on the project’s feasibility?
D. Assume that management has enough money to fund two development projects. After you determine this project’s internal rate of return, compare its internal rate return to the internal rate of returns for the proposed development projects listed in the following table. Based on the projects’ internal rate of returns, do you think management will fund custom order-tracking system?
I will upload the Excel which is need to use.