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Economic Benefit and Cost Analysis

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3 views2 pages

Economic Benefit and Cost Analysis

Uploaded by

ambition1340cn
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Year 0 Year 1 Year 2

Net economic bene t 0 $ 50,000.00 $ 50,000.00


Discount factor 1 0.909 0.826
PV of bene ts 0 $ 45,450.00 $ 41,300.00

NPV of all bene ts $ - $ 45,450.00 $ 86,750.00

One me costs $ 42,500.00

Recurring costs 0 $ (28,500.00) $ (28,500.00)


Discount Factor 1 0.909 0.826
PV of Recurring Costs 0 $ (25,906.50) $ (23,541.00)

NPV of all COSTS $ (42,500.00) $ (68,406.50) $ (91,947.50)

Overall NPV

Overall ROI (Overall NPV/NPV of all costs)


Working only

Breakeven Analysis
Yearly NPV Cash ow $ (42,500.00) $ (19,543.50) $ (17,759.00)
Overall NPV Cash ow $ (42,500.00) $ (22,956.50) $ (5,197.50)

1
ti
fi
fi
fl
fl
fi
Year 3 Year 4 Year 5 Totals
$ 50,000.00 $ 50,000.00 $ 50,000.00
0.751 0.683 0.621
$ 37,550.00 $ 34,150.00 $ 31,050.00

$ 124,300.00 $ 158,450.00 $ 189,500.00 $ 189,500.00

$ (28,500.00) $ (28,500.00) $ (28,500.00)


0.751 0.683 0.621
$ (21,403.50) $ (19,465.50) $ (17,698.50)

$ (113,351.00) $ (132,816.50) $ (150,515.00) $ (150,515.00)

$ 38,985.00

0.26
-0.259010729827592

$ (16,146.50) $ (14,684.50) $ (13,351.50)


$ 10,949.00 $ 25,633.50 $ 38,985.00

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