Week 2 Cost Benefit Analysis Alternative C Worksheet - Cost Benefit Analysis YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 Net Economic Benefit 12 PV of

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

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Cost Benefit A YEAR 0 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 Net Economic Benefit $0 $60,000 $60,000 $60,000 $60,000 $60,000 12% 1 0.89286 0.79719388 0.71178025 0.63551808 0.56742686 PV of Benefits $0 $53,571 $47,832 $42,707 $38,131 $34,046 NPV of all Benefits $0 $53,571 $101,403 $144,110 $182,241 $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) Overall NPV Overall ROI Break-even Analysis Yearly NPV Cash Flow ($30,000) $31,250 $27,902 $24,912 $22,243 $19,860 Overall NPV Cash Flow ($30,000) $1,250 $29,152 $54,064 $76,307 $96,167 Use the First year of positive cash flow to calculate break-even fraction $0.96 Actual break-even occurs at Year 1 Post step 3 here!!!
Analysis Spreadsheet For NOVA TOTAL Must be given: 1. Net economic benefit from Tangible benefit worksheet goes in row 7 cell C7 2. discount rate: Row 8 Cell A8 as a fraction; ie 12% would be entered as 3. One time cost which will be placed in row 13,cell B13. make sure to enter the 4. Recurring costs place in row 15 - cell C15, make sure to enter the cost as a n $216,287 ($120,119) $96,167 0.80 Calculating the Break Even Point BEP 3. ADD Step 1 (full year value) with Step 2 (fractional year value) = 1. Find the last year row 30 is negative; go up the column to the year listed in row 6 - write down that result as the whole year. Then do steps 2 and 3 below to calculate fraction to add to the whole year value 2. First year row 30 is positive, take row 29 and subract row 30 in same column and the the row 29 value/ row 29
s .12 e cost as a negative negative en divide result by

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