MGT 340 Week 2 Cost Benefit Analysis.xls

MGT 340 Week 2 Cost Benefit Analysis.xls - Cost Benefit...

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Cost Benefit An Date : 03/10/2018 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 0.12 1 0.89286 0.7971939 0.7117802 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 0.8928571 0.7971939 0.7117802 0.63551808 0.56742686 PV of Recurring Cost $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 Flo ($30,000) $31,250 $27,902 $24,912 $22,243 $19,860 Overall NPV Cash Fl ($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 Actual break-even occurs at 1
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nalysis Spreadsheet For NOVA TOTAL Must be given:
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