Customer Tracking System Project

Year 0 Year 1 Year 2 Year3 Year 4 Year 5

Net Economic benefit - 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00
Discount Rate (12%) 1 0.8929 0.7972 0.7118 0.6355 0.5674
PV of Benefits 0 44,642.86 39,859.69 35,589.01 31,775.90 28,371.34

NPV of all BENEFITS 0 44,642.86 84,502.55 120,091.56 151,867.47 180,238.81

One Time Cost -42,500

Recurring Cost 0 -28,500 -28,500 -28,500 -28,500 -28,500
Discount Rate (12%) 1 0.8929 0.7972 0.7118 0.6355 0.5674
PV of Costs - 42,500.00 - 25,446.43 - 22,720.03 - 20,285.74 - 18,112.27 - 16,171.67

NPV of all COSTS - 42,500.00 - 67,946.43 - 90,666.45 - 110,952.19 - 129,064.46 - 145,236.12

Overall NPV

Overall ROI = (Overall NPV / NPV of all COST)

Break Even Analysis

Yearly NPV Cash Flow - 42,500.00 19,196.43 17,139.67 15,303.28 13,663.64 12,199.68
Overall NPV Cash Flow - 42,500.00 - 23,303.57 - 6,163.90 9,139.37 22,803.01 35,002.69

Project break Eveb occurs between 2 and 3

Break Even Fraction : 0.40278326
Actial Break Even occurred at 2.4 years
 TOTALS

180,238.81

- 145,236.12

35,002.69

-0.24100539125
Customer Tracking System Project

Year 0 Year 1 Year 2 Year3 Year 4 Year 5

Net Economic benefit - 40,000.00 50,000.00 60,000.00 70,000.00 80,000.00
Discount Rate (11%) 1 0.9009 0.8116 0.7312 0.6587 0.5935
PV of Benefits 0 36,036.04 40,581.12 43,871.48 46,111.17 47,476.11

NPV of all BENEFITS 0 36,036.04 76,617.16 120,488.64 166,599.81 214,075.92

One Time Cost -80,000

Recurring Cost 0 -45,000 -45,000 -45,000 -45,000 -45,000
Discount Rate (11%) 1 0.9009 0.8116 0.7312 0.6587 0.5935
PV of Costs - 80,000.00 - 40,540.54 - 36,523.01 - 32,903.61 - 29,642.89 - 26,705.31

NPV of all COSTS - 80,000.00 - 120,540.54 - 157,063.55 - 189,967.16 - 219,610.06 - 246,315.37

Overall NPV

Overall ROI = (Overall NPV / NPV of all COST)

Break Even Analysis

Yearly NPV Cash Flow - 42,500.00 - 4,504.50 4,058.11 10,967.87 16,468.27 20,770.80
Overall NPV Cash Flow - 42,500.00 - 47,004.50 - 42,946.39 - 31,978.52 - 15,510.25 5,260.55

Project break Eveb occurs between 4 and 5

Break Even Fraction : 0.74673339
Actial Break Even occurred at 4.7 years
 Year 6 TOTALS
90,000.00
0.5346
48,117.68

262,193.59 262,193.59

-45,000
0.5346
- 24,058.84

- 270,374.20 - 270,374.20

- 8,180.61

0.03025663342

24,058.84
29,319.39