Year

0
1
2
3
4
5
NPV
IRR

Project1
Project2
Project3
Project4
-100000
-1000000
-100000
-120000
10000
200000
30000
30000
10000
200000
30000
30000
10000
200000
30000
30000
20000
200000
30000
30000
100000
300000
30000
75000
$620.92 ($179,750.51) $13,723.60 $21,665.06
$100,620.92
10%
3%
15%
16%

P
800000
650000
100000

Expected Income
$1,339,594.29

I*P
0.1
0.6
0.3

80000
390000
30000
500000

NPV
IRR

-750000
300000
300000
300000
300000
$200,959.63
22%

Yr

Benefit
1
2
3
4
5

Project 1

0
2000
3000
4000
5000

Cost

Cash Flow
5000
-5000
1000
1000
1000
2000
1000
3000
1000
4000

NPV

$2,547.98

1
2
3
4
5

Project 2

NPV

1000
2000
4000
4000
4000

2000
2000
2000
2000
2000

-1000
0
2000
2000
2000
$3,521.55

Cash Flow
-70000
12000
15000
18000
21000
26000
NPV
IRR

($2,683.31)
-2% Return after 4 yrs
9%
-44%

Cash Flow
-100000
10000
10000
10000
20000
99000

IRR

$0.00
10%

Yr
0
1
2
3
4

NPV
IRR

Cash Flow
-750000
300000
300000
300000
300000

$200,959.63
22%

Discount Rate

5%

Develop In-house
Year

Cost
0
1
2
3

Discount Factor
-480000
180000
200000
225000

Outsource
Year
0
1
2
3

-620000
60000
80000
110000

1
0.95
0.9
0.86

Discounted Cost

Benefit
480000
171000
180000
193500

Discount Factor
0
350000
350000
650000

0
450000
550000
650000

1
0.95
0.9
0.86

Discounted Benefit
0
332500
315000
559000

Discounted Benefit Cost

Cummulative Benefits Cost
-480000
-480000
161500
318500
135000
453500
365500
819000
182000
1111000

Year

Cost
0
1
2
3

DF
-140000
40000
40000
40000

Discount Cost
1
0.93
0.86
0.79

140000
37200
34400
31600
243200

Benefits
0
200000
200000
200000

DF

Discounted Benefits
1
0.93
0.86
0.79

0
186000
172000
158000
516000

Discounted Benefits Cost

-140000
148800
137600
126400
272800

Cummulative Benefits Cost

cost - benefit
-140000
8800
146400
272800
NPV
ROI
Payback yr

-140000
160000
160000
160000

$272,335.52
112.1710526316
1st yr