Sheet1 Kevin Carter ID 5364693 IS 310.001 Assignment 1 Question 3 Year 0 1 2 3 4 5 BENEFIT ANALYSIS Benefit Amount 0 40000 45000 50000 55000 60000 null Discount Rate 0.1 Discount Factor 1 0.90909090909090906 0.82644628099173545 0.75131480090157754 0.68301345536507052 0.62092132305915493 PV of Benefit 0 36363.63636363636 37190.082644628092 37565.740045078877 37565.740045078877 37255.279383549292 Cummulative PV of Benefit 0 36363.63636363636 73553.719008264452 111119.45905334334 148685.19909842222 185940.47848197151 COSTS ANALYSIS One-Time Cost -50000 Discount Rate 0.08 Recurring Costs 0 -25000 -25000 -25000 -25000 -25000 Discount Factor 1 0.92592592592592582 0.85733882030178321 0.79383224102016958 0.73502985279645328 0.68058319703375303 PV of Costs -50000 -23148.148148148146 -21433.470507544582 -19845.80602550424 -18375.746319911334 -17014.579925843827 Cummulative PV of Costs -50000 -73148.148148148146 -94581.618655692728 -114427.42468119696 -132803.17100110831 -149817.75092695214 Change sign for PV of costs 50000 73148.148148148146 94581.618655692728 114427.42468119696 132803.17100110831 149817.75092695214 null null null null null null Overall NPV(net present value) 36122.727555019374 ROI(Return on Investment) 0.2411111322358058 BREAKEVEN ANALYSIS Yearly PV cashflow -50000 13215.488215488214 15756.61213708351 17719.934019574637 19189.993725167544 20240.699457705465 Cummalative NPV cashflow -50000 -36784.511784511786 -21027.899647428276 -3307.9656278536277 15882.028097313916 36122.727555019374 Project breaks-even between years 3 and 4 Breakeven fraction = (15303-9139)/15303= 0.17237971388782966 Actual breakeven point = 3.1723797138878296 years Sheet2 Sheet3
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