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

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