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APPENDIX I

Discount
ECONOMIC FEASIBILITY ANALYSIS Rate 12.00%

Year of Project

0 1 2 3 4 5 6 7

Net Economic Benefit 0 20000 20000 20000 20000 20000 20000 20000

Discount rate 1 0.8929 0.7972 0.7118 0.6355 0.5674 0.5066 0.4523

PV of benefits 0 17857.14286 15943.878 14235.605 12710.362 11348.537 10132.622 9046.9843

Total PV Of Benefits 48036.63

One-time COSTS -60000

Recurring Costs 0 -10000 -10000 -10000

Discount rate (12%) 1 0.8929 0.7972 0.7118


-
PV of Recurring Costs 0 8928.571429 -7971.94 -7117.8

Total PV of Recurring Costs -24018.3

NPV of total COSTS -84018.3

Overall NPV -35981.7

Overall ROI - (Overall NPV / NPV of all COSTS) -0.42826


Break-even Analysis
-
Yearly PV Costs -60000 68928.57143 -76900.5 -84018.3
- - - - -
Cumulative Net Cash Flow -84018.3 -66161.16983 50217.292 35981.687 23271.326 11922.789 1790.1662 7256.8181

Project break-even occurs between years 6 and 7

Actual break-even occurred at 6.19787years


APPENDIX I

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