Sheet1

Costs
Amount (in negotiated dollars)
Annual Licensing Fees
$1,249
Annual Support Contract
$9,000
Development Staff for Year 1 and 2
$249,000
Support Staff for Years 3 7
$78,000
Support Staff Salary Increase
8%
Computer Hardware
$25,000
Benefits
Sales Revenues Year 1
0
Sales Revenues Year 2
$39,000.00
Sales Revenues Year 3
$278,000.00
Sales Revenues Year 4
$437,000.00
Sales Revenues Year 5
$352,000.00
Sales Revenues Year 6
$128,000.00
Sales Revenues Year 7
$48,000.00
Expenses (Costs)
Licensing Fees
Support Contract
Development Staff
Support Staff
Computer Hardware
Discount Factor (3%)
Present Value of Expenses
Cumulative Expenses

per year
per year
per year

3%

Cumula&ve Cost Benet

$400,000.00

Breakeven (approx)
4.521652482
Equation
0.060703336
Lifetime ROI
Annual ROI

y = -22430x3 + 267004x2 - 804167x + 250756

R = 0.96663

$200,000.00

per year

Cumula;ve Cost Benet

$-

1.0367
0.1481

-$200,000.00

-$400,000.00
-$600,000.00

1
2
3
-$
1,249.00 -$
1,249.00 -$
1,249.00 -$
-$
9,000.00 -$
9,000.00 -$
9,000.00 -$
-$ 249,000.00 -$ 249,000.00
-$ 78,000.00 -$
-$ 25,000.00 -$ 25,000.00 -$ 25,000.00 -$
1.000
0.971
0.943
-$ 284,249.00 -$ 275,969.90 -$ 106,748.04 -$
-$ 284,249.00 -$ 560,218.90 -$ 666,966.95 -$

Benefits
Sales Revenue
$
Discount Factor (3%)
Present Value of Benefits
$
Cumulative Savings
$
Cumulative Cost Benefit

Discount Rate

$
1.000
$
$

Year
4
1,249.00 -$
9,000.00 -$
84,240.00
25,000.00
0.915
109,349.36
776,316.31

-$
-$
-$
-$

5
1,249.00 -$
9,000.00 -$
90,979.20
25,000.00
0.888
112,152.12
888,468.43

6
1,249.00 -$
9,000.00 -$

-$
-$

98,257.54
25,000.00
0.863
-$ 115,163.91
-$ 1,003,632.34

7
1,249.00
9,000.00

-$
-$

106,118.14
25,000.00
0.837
-$ 118,392.75
-$ 1,122,025.09

39,000.00 $ 278,000.00 $ 437,000.00 $ 352,000.00 $ 128,000.00 $

48,000.00
0.971
0.943
0.915
0.888
0.863
0.837
37,864.08 $ 262,041.66 $ 399,916.91 $ 312,747.44 $ 110,413.92 $
40,199.24
37,864.08 $ 299,905.74 $ 699,822.65 $ 1,012,570.09 $ 1,122,984.01 $ 1,163,183.26

-$ 284,249.00 -$ 522,354.83 -$ 367,061.21 -$ 76,493.66

Page 1

124,101.66

119,351.67

41,158.16

Poly. (Cumula;ve Cost

Benet)