TANGIBLE BENEFITS WORKSHEET

Dolor Project

Year 1 through 5
A Error Reduction $ 10,000
B Project Management Software $ 17,000
C Reduce Labor Costs $ 13,000
D File Sharing $ 15,000
E Heightened Operational Productivity $ 20,000

Total tangible benefits $ 75,000

 ONE-TIME COSTS WORKSHEET
Dolor Project

Year 0
A Error Reduction $ 5,000
B Project Management Software $ 15,000
C Reduce Labor Costs $ 8,000
D File Sharing $ 10,000
E Heightened Operational Productivity $ 12,000

Total One-time costs $ 50,000

 RECURRING COSTS WORKSHEET
Dolor Project

Year 1 through 5
A Error Reduction $ 8,000
B Project Management Software $ 6,000
C Reduce Labor Costs $ 10,000
D File Sharing $ 7,000
E Heightened Operational Productivity $ 4,000

Total Recurring costs $ 35,000

Student Name : Jhazzie Lindsay G. Dolor
Economic Feasibility Analysis
Project Name : Dolor
0 1
Net Economic Benefit $0 $ 75,000
Discount Rate ( 10 %) 1.0000 0.9091
PV of Benefits $0 $ 68,183

NPV of all Benefits $ 68,183

One-Time COSTs $ (50,000.00)

Recurring Costs $0 $ (35,000)

Discount Rate ( 10 % ) 1.0000 0.9091
PV of Recurring Costs $0 $ (31,819)

NPV of All COSTS $ (50,000) $ (81,819)

Overall NPV

ROI = Overall NPV / NPV of Costs

Year of Project 0 1
Break-Even Analysis
Yearly NPV Cash Flow $ (50,000) $ 36,364
Overall NPV Cash Flow $ (50,000) $ (13,636)

Break-even ratio/ Payback period 0.413

Actual Break-even occurred at 1.413 year ( Year 1 is the period with negative cumulative cash flow + the Break

***break-even ratio = (yearly NPV cashflow - general NPV cash flow) / yearly NPV Cash Flow
Use 1st year of positive cash flow to calculate Break-even ratio or Pay back period

Note: All dollar values have been rounded to the nearst dollar.

Project break-even occurs between years 1 and 2

 Years from Today
2 3 4 5 TOTALS
$ 75,000 $ 75,000 $ 75,000 $ 75,000
0.8264 0.7513 0.6830 0.6209
$ 61,980 $ 56,348 $ 51,225 $ 46,568

$ 130,163 $ 186,510 $ 237,735 $ 284,303 $ 284,303

$ (35,000) $ (35,000) $ (35,000) $ (35,000)

0.8264 0.7513 0.6830 0.6209
$ (28,926) $ (26,296) $ (23,905) $ (21,732)

$ (110,744) $ (137,040) $ (160,945) $ (182,676) $ (182,676)

$ 101,626

56% / 0.56

2 3 4 5

$ 33,054 $ 30,052 $ 27,320 $24,836

$ 19,418 $ 49,470 $ 76,790 $101,626

h negative cumulative cash flow + the Break-even ration )