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