RMO Cost/benefit analysis Year 0 Year 1 Year 2 Year 3

1 Value of benefits $- 1000000 1250000 1500000

2 Discount factor (10%) 1 0.9091 0.8264 0.7513
3 Present value of benefits $- 909100 1033000 1126950
4 Development costs 2577300
5 Ongoing costs 150000 150000 150000
6 Discount factor (10%) 1 0.9091 0.8264 0.7513
7 Present value of ongoing cost $- 136365 123960 112695
8 PV of net of benefits and costs 2577300 772735 909040 1014255
9 Cumulative NPV 2577300 -1804565 -895525 118730
10 Payback period 0.88293871
11 5-year return on investment 0.9032043
321.2
10.7333333
21.9
Year 4 Year 5 Total
2000000 2500000 8250000 Benefit / Cost saving
0.683 0.6209 Increased efficiency in
1366000 1552250 5987300 Other savings
2577300
150000 150000
0.683 0.6209
102450 93135 568605
1263550 1459115
1382280 2841395