# Week 2 - Cost Benefit Analysis Alternative C Worksheet -...

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Cost Benefit Analysis Spreadsheet For NOVA YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL Must be given: Net Economic Benefit \$0 \$60,000 \$60,000 \$60,000 \$60,000 \$60,000 1. Net economic benefit from Tang 0.12 1 0.89286 0.79719388 0.71178025 0.63551808 0.56742686 2. discount rate: Row 8 Cell PV of Benefits \$0 \$53,571 \$47,832 \$42,707 \$38,131 \$34,046 3. One time cost which will be plac 4. Recurring costs place in row 15 NPV of all Benefits \$0 \$53,571 \$101,403 \$144,110 \$182,241 \$216,287 \$216,287 One-Time Costs (\$30,000) Recurring Costs \$0 (\$25,000) (\$25,000) (\$25,000) (\$25,000) (\$25,000) Discount Rate 1 0.892857143 0.79719388 0.71178025 0.63551808 0.56742686 PV of Recurring Costs \$0 (\$22,321) (\$19,930) (\$17,795) (\$15,888) (\$14,186) NPV of all Costs (\$30,000) (\$52,321) (\$72,251) (\$90,046) (\$105,934) (\$120,119) (\$120,119) Overall NPV \$96,167 Overall ROI 0.80 Calculating the Br Break-even Analysis Yearly NPV Cash Flow (\$30,000) \$31,250 \$27,902 \$24,912 \$22,243 \$19,860 Overall NPV Cash Flow