Profit/loss Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

Net Economic Benefit $0 $50,000 $50,000 $50,000 $50,000 $50,000

One time cost $60,000
Recurring cost $0 $25,000 $25,000 $25,000 $25,000 $25,000
Benefit $25,000 $25,000 $25,000 $25,000 $25,000
Discount Rate(25%) 25% 25% 25% 25% 25% 25%

Dicounted cost $60,000 $20,000 $16,000 $12,800 $10,245.00 $8,196

Discounted Benefits $20,000 $16,000 $12,800 $10,245.00 $8,196

Sum costs $127,241 Sum Benefits $67,241

Benefits/cost ratio 0.528