Cost/Benefit Analysis

Net Economic Benefit

Discount Rate (3.8%)
PV of Benefits
NPV of all Benefits
One-time Costs
Recurring Costs
Discount Rate (3.8%)
PV of all Costs
NPV of all Costs
(Cummulative NPV)
Overall NPV

0.00
1.0000
0.00

1
8,000.00
0.9634
7,707.13

Year of Project
2
3
8,000.00 8,000.00
0.9281
0.8941
7,424.98 7,153.16

0.00

7,707.13

15,132.11 22,285.27

4
8,000.00
0.8614
6,891.29
29,176.56

Php 20,000.00
0.00
1.0000
0.00

0.00
0.9634
0.00

0.00
0.9281
0.00

0.00
0.8941
0.00

0.00
0.8614
0.00

20,000.00 20,000.00 20,000.00 20,000.00

20,000.00

8,000.00

8,000.00

8,000.00

8,000.00

20,000.00 7,707.13
20,000.00 -12,292.87

7,424.98
-4,867.89

7,153.16
2,285.27

6,891.29
9,176.56

Return of Investment
Break-Even Analysis
Yearly NPV Cash Flow
Overall NPV Cash Flow

Project break-even occurs between years 2 and 3

Break-even fraction = (7,153.16-2,285.27) / 7,153.16 =0.68
Actual break-even occurred at 2.68 years

Break - Even Analysis

35,000.00

30,000.00

ands Php

25,000.00

20,000.00

Break-Even Point
(2.68 Years)

Thousands Php

25,000.00
Break-Even Point
(2.68 Years)

20,000.00

15,000.00

10,000.00
Years
5,000.00

0.00
1

Total
5
8,000.00
0.8299
6,639.01
35,815.57

35,815.57

0.00
0.8299
0.00
20,000.00

20,000.00

8,000.00

15,815.57
0.79

6,639.01
15,815.57

35,815.57

NPV of all Benefits

NPV of all Costs

NPV of all Benefits

NPV of all Costs