Although Ms Although Ms. Pablo is the primary user of the Economic feasibility workbook, other project team members will have access to this workbook. Therefore, you decide that all cells other than input cells, should be protected. (You may wish to use your system’s online help feature to review worksheet protection.)
INFORMATION SPECIFICATIONS
Ms. Pablo wants to generate optimistic, realistic, and pessimistic views of the data, so she requests the ability to quickly change the discount rate. To satisfy this requirement, you include a cell on your economic feasibility summary worksheet to hold the discount rate is used in several formulas, so referencing this cell in a formula facilitates the economic feasibility analysis.
The economic feasibility summary worksheet summarizes the costs and benefits, shows the present values of the costs and benefits, calculates the overall net present value, and shows the yearly and overall cash flows for the project. Although not show in Figure 1, Ms. Pablo requests that the project’s breakeven point and internal rate of return be determined. During her presentation to management, Ms. Pablo will use the breakeven point to help justify the project’s viability and show how quickly management will recover its investment in the project. Since the internal rate of return provides an indication of the project’s profitability, Ms. Pablo will use the internal rate of return to help justify management’s investment in the project.
Ms. Pablo needs answers to the following questions. Using your newly designed economic feasibility workbook, provide Ms. Pablo with answers to her questions.

1. How will discount rates of 10, 12, and 14 percent affect the project’s feasibility?
2. If management stipulates that the internal rate of return must be equal to or greater than the discount rate, is this project still justifiable?
3. How will eliminating an additional staff position of $25,000 affect the economic feasibility assessment?
4. Assume that the staff position mentioned in Step 3 is eliminated and that the site preparation cost increases to $95,000. What impact will these changes have on the project’s Feasibility?