Scribd
Upload
10 views1 page

Cost Benefit Analysis

Uploaded by

ProBlaze
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
10 views1 page

Cost Benefit Analysis

Uploaded by

ProBlaze
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 1

Interest 10

Row
1 Years 0 1 2 3 4 5
Benefit
2 Net Economic Benefit - 40,000 45,000 50,000 55,000 60,000
3 Discount Factor 1 0.9091 0.8264 0.7513 0.6830 0.6209
4 PV of Benefits 36,364 37,190 37,566 37,566 37,255
5 NPV of all Benefits 36,364 73,554 111,119 148,685 185,940

Cost
6 One Time Costs (75,000)
7 Recuring Costs (20,000) (20,000) (20,000) (20,000) (20,000)
8 Discount Factor 1 0.9091 0.8264 0.7513 0.6830 0.6209
9 PV of all Costs (75,000) (18,182) (16,529) (15,026) (13,660) (12,418)
10 NPV of all Cost (75,000) (93,182) (109,711) (124,737) (138,397) (150,816)
11 Overall NPV (56,818) (36,157) (13,618) 10,288 35,125

Break Even Analysis


12 Yearly NPV Cash Flow (75,000) 18,182 20,661 22,539 23,905 24,837
13 Overall NPV Cash Flow (75,000) (56,818) (36,157) (13,618) 10,288 35,125
14 Interest Rate 0.1
15 Project breakeven occurs between year 3 and 4
16 Breakeven ratio 0.570
17 Breakeven will occur at 3 yr 7 mon
18 Overall ROI 0.232898

You might also like