grp3_econ_feas_analysis_v6

grp3_econ_feas_analysis_v6 - Paragon Systems Economic...

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Paragon Systems Economic Feasibility Analysis Scott Hall / Scott Village Resident Tracking System Year of Project Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 TOTALS Net economic benefit $0 $4,040 $4,040 $4,040 $4,040 $4,040 Discount rate (11%) 1.00 0.90 0.81 0.73 0.66 0.59 PV of benefits $0 $3,640 $3,279 $2,954 $2,661 $2,398 NPV of all BENEFITS $0 $3,640 $6,919 $9,873 $12,534 $14,931 $47,896 One-time COSTS ($6,838) Recurring Costs $0 ($98) ($98) ($98) ($98) ($98) Discount rate (11%) 1.00 0.90 0.81 0.73 0.66 0.59 PV of Recurring Costs ($6,838) ($88) ($80) ($72) ($65) ($58) NPV of all COSTS ($6,838) ($6,927) ($7,006) ($7,078) ($7,143) ($7,201) ($7,201) $6,838 $6,927 $7,006 $7,078 $7,143 $7,201 Overall NPV $40,695 Overall ROI - (Overall NPV/NPV of all COSTS) 6% Break-even Analysis Yearly NPV Cash Flow ($6,838) $3,551 $3,199 $2,882 $2,597 $2,339 Overall NPV Cash Flow ($6,838) ($3,287) ($88) $2,795 $5,391 $7,731 Use first year of positive cash flow to calculate Break-Even fr 1.93 Actual break-even ocurrs at 1.9 years
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grp3_econ_feas_analysis_v6 - Paragon Systems Economic...

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