Cost benefit sheet

The principle (where Cost and Benefit is the same for each year) The table show the actual discount rate
You can’t compare the value of money in year 0 and year 3. They do not have the same

c.
ac
value. You must investigate or analyse what will happen with the value, if you put them in the

e
lu
bank and get a return on your money - or make an alternative investment to another interest

va
e
rate.

at

nt
tr

se
The Idea: How much money must I put in the bank today, if I want to have 1 Dkr. after 1 year,

un

e
pr
co
and if I can get xx% in annual interest? – Is there a better investment e.g. stocks and bonds?

et
is
Table function in Excel:

N
Records Year 0 Year 1 Year 2 Year 3 Year 4 13.2 1. Start with developing the Cost Benefit sheet
Cost 5.0% 86.3 2. Insert the values for each year
Development -285.0 5.5% 78.4 3. Decide discount rate and insert the value
Implementation -102.0 6.0% 70.6 4. Let Excel calulate net present value
Equipment -216.0 6.5% 63.0 5. Build the column with discount rate in intervals
Operations per year -53.0 -53.0 -53.0 -53.0 7.0% 55.5 6. Set references to net present value accum. (here: cell K
License per year 10% (Equipment) -21.6 -21.6 -21.6 -21.6 7.5% 48.1 7. Mark the area (here: J4:K24) and choose "Data" and th
Cost total -603.0 -74.6 -74.6 -74.6 -74.6 8.0% 40.9 8. Choose "Datatabel"
8.5% 33.8 9. Insert "Input in column" Discount Rate (here C22)
Benefit 9.0% 26.8 7. Press OK
Cost-Reduktion 94.0 94.0 94.0 94.0 9.5% 20.0
Personnel 62.0 62.0 62.0 62.0 10.0% 13.2
Net present value
Other savings 113.0 113.0 113.0 113.0 10.5% 6.6
Benefit total 0.0 269.0 269.0 269.0 269.0 11.0% 0.1 100.0
11.5% -6.3
0.0
Benefit - Cost -603.0 194.4 194.4 194.4 194.4 174.6 12.0% -12.5 Year 0 Year 1 Year 2 Yea
12.5% -18.7 -100.0
Discount rate (according to table) 1.000 0.909 0.826 0.751 0.683 13.0% -24.8
-200.0
Net present value (NPV) 10% -603.0 176.7 160.7 146.1 132.8 13.2 13.5% -30.7
14.0% -36.6 -300.0
Net present value accumulated 13.2 14.5% -42.3
-400.0

-500.0
ROI with discount = (NPV Y 1- 4 - Y0 / Y 0 2%
-600.0
ROI without discount = (Net benefit - Y 0) / Year 0 29%
-700.0
(husk fortegnene i beregning) DATA: -603.0 -426.3 -265.6 -119.6
m. (here: cell K4 = D24)
"Data" and there the function ""What if analyse"

re C22)

alue

ar 2 Year 3 Year 4

13.2
Cost benefit sheet
Records Year 0 Year 1 Year 2 Year 3 Year 4
Cost
-
-
-
-
-
Cost total 0.0 0.0 0.0 0.0 0.0

Benefit
-
-
-
Benefit total 0.0 0.0 0.0 0.0 0.0

Benefit - Cost 0.0 0.0 0.0 0.0 0.0

Discount rate (according to table) 1.000 1.000 1.000 1.000 1.000

Net present value (NPV) 0% 0.0 0.0 0.0 0.0 0.0

Net present value accumulated 0.0

0.0 0.0 0.0 0.0 0.0

c.
ac
e
lu
va

The table show the actual discount rate

e
at

nt
tr

se
un

e
pr
co

et
is
D

0.0
5.0% 0.0
5.5% 0.0
6.0% 0.0
6.5% 0.0
7.0% 0.0
7.5% 0.0
8.0% 0.0
8.5% 0.0
9.0% 0.0
9.5% 0.0
10.0% 0.0
10.5% 0.0
11.0% 0.0
11.5% 0.0
12.0% 0.0
12.5% 0.0
13.0% 0.0
13.5% 0.0
14.0% 0.0
14.5% 0.0
 Table with discount rate

1/POTENS(1+B$6;$A$7)

Discount rate
Year 4% 5% 6% 7% 8% 9% 10% 11% 12%
1 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091 0.9009 0.8929
2 0.9246 0.9070 0.8900 0.8734 0.8573 0.8417 0.8264 0.8116 0.7972
3 0.8890 0.8638 0.8396 0.8163 0.7938 0.7722 0.7513 0.7312 0.7118
4 0.8548 0.8227 0.7921 0.7629 0.7350 0.7084 0.6830 0.6587 0.6355
5 0.8219 0.7835 0.7473 0.7130 0.6806 0.6499 0.6209 0.5935 0.5674
6 0.7903 0.7462 0.7050 0.6663 0.6302 0.5963 0.5645 0.5346 0.5066
7 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.4817 0.4523
8 0.7307 0.6768 0.6274 0.5820 0.5403 0.5019 0.4665 0.4339 0.4039
9 0.7026 0.6446 0.5919 0.5439 0.5002 0.4604 0.4241 0.3909 0.3606

Hvor mange kr. skal jeg sætte i banken i dag for at få 1 kr. efter x år ved en bestem
How many kr. must I put in the bank today to get 1 kr. after x years at a certain inte

Side 5
 Table with discount rate

13%
0.8850
0.7831
0.6931
0.6133
0.5428
0.4803
0.4251
0.3762
0.3329

x år ved en bestemt rentesats (kalkulationsrenten)

ars at a certain interest rate (discount rate)

Side 6