2 page apa format see attached PDF
Due: In this assignment you will perform a Net Present Value Analysis for a project.Refer to the attached document for full assignment details and grading rubric.
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CIS213 – Project Management
Net Present Value Analysis
Due: Midnight Sunday of Unit 3.
In this assignment you will perform a Net Present Value Analysis for a project.
1. Assume a student is planning to pursue a two-year master’s degree. There are two
educational options the student is considering, with investment and cash flows as follows.
Option A: Full-Time Education
Example cash investment: $100,000. Currently the student is earning $30,000. The
student will quit his/her current job to study a Master’s degree in computer science.
Upon graduation the student hopes to earn $60,000 per year in new job.
Option B: Part-Time Education
Example cash investment: $100,000. Currently the student is earning $30,000. The
student can work part-time for three years at a salary of $20,000 while studying towards
the master’s degree in project management. Upon graduation the student anticipates a
possible increase in salary by $10,000 (total $40,000) in the same company.
The requirements for the assignment are:
• Answer the following questions based on the unit readings:
1. Briefly describe what net present value is, how it is calculated, and what it is
used for.
2. Calculate the NPV for each educational option. The discount rate is 8%.
3. Which option should the student choose? Explain your decision including
any necessary assumptions made.
• The paper must be APA-formatted as a Word document.
• SafAssign will be used to check this assignment for plagiarism. Remember to
paraphrase in your own words and do not copy directly.
• The length must be 1-2 pages, excluding the title and reference pages.
• Include at least one reference.
Copyright 2022 Post University, ALL RIGHTS RESERVED
Refer below for the grading rubric.
Students: Be sure to read the criteria, by which your paper/project will be evaluated, before you
write, and again after you write.
Grading Rubric
CRITERIA Deficient Proficient Exemplary
0-15 points 16-17 points 18-20 points
Net Present Analysis Does not provide Description is Description is
adequate details or is detailed but may be complete including
missing. missing some key details of calculation
element or detail of and use.
calculation or use.
0-15 points 16-17 points 18-20 points
NPV Calculations Multiple errors in the Minor error exists in NPV for both options
calculations or the calculations. is calculated
missing calculations. correctly.
0-15 points 16-17 points 18-20 points
Choice Explanation Explanation is Explanation is logical Explanation of chosen
inadequate or but may be confusing option logically
missing. or incomplete in one supports the decision.
aspect.
0-15 points 16-17 points 18-20 points
Clear and professional Errors impede Few errors that do Writing and format is
writing and APA professional not impede clear, professional,
format presentation; professional APA compliant, and
guidelines not presentation error free
followed
0 – 7 points 8 points 9-10 points
Resources No resource or One Appropriate More than One
inappropriate Resource Appropriate
resource Resource
0 – 7 points 8 points 9-10 points
Paper Length Less than 1 page of Less than 2 pages of 2 or more pages of
appropriate content. appropriate content. appropriate content.