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Unformatted text preview: 1 0.89 0.8 0.71 0.64 0.57 PV of Recurring Costs $0 $35,714 $31,888 $28,471 $25,421 $22,697 NPV of all Costs $75,000 $110,714 $142,602 $171,073 $196,494 $219,191 Overall NPV Overall ROI Breakeven Analysis Yearly NPV Cash Flow ($75,000) $40,179 $35,874 $32,030 $28,598 $25,534 Overall NPV Cash Flow ($75,000) ($34,821) $1,052 $33,082 $61,681 $87,215 In this example, Use the First year of positive cash flow to calculate breakeven fraction ((35,874  1,052) / 3 Actual breakeven occurs at 1.97 years. Break Even Occurs between years where row 30 changes from negative (in red) to a positive number (in blac last year row 30 is in the red, would be the whole number for the Break Even calculation. TOTAL $306,406 $219,191 $87,215 0.40 35,874) = .971 ck). The...
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This note was uploaded on 12/28/2010 for the course MGMT 340 taught by Professor Kerns during the Spring '10 term at DeVry Columbus North.
 Spring '10
 Kerns

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