Interest 1 2 3 4 5

0.03 1.0300000 1.0609000 1.0927270 1.1255088 1.1592741

removed customer d 612500 630000 632500 645000 652500

removed shipment del 8750 10000 12500 15000 17500

TB 621,250 640,000 645,000 660,000 670,000

PV TB 603,155 603,261 590,266 586,401 577,948 2,961,032
3,250,000
PV ALL 603,155 1,206,417 1,796,683 2,383,085 2,961,032
one time cost
research & developm 2,000,000 2,750,000

ongoing cost 2,250,000

operational cost 40000 47500 60000 72500 85000

1,750,000

TC 2,040,000 47,500 60,000 72,500 85,000

PV TC 1,980,583 44,773 54,908 64,415 73,322 2,218,001 1,250,000
PV ALL 1,980,583 2,025,356 2,080,264 2,144,680 2,218,001

750,000

250,000
FV (1,418,750) 592,500 585,000 587,500 585,000
ALL (1,377,427) 558,488 535,358 521,986 504,626 743,031 1
ALL-ALL (1,377,427) (818,939) (283,581) 238,405 743,031 Total Cost 1,980,583
0 2.4663502109705 1.529704059829 0.5432735 -0.47243867 Total Benefit 603,155
ROI 33.50%

Present Value
Return on Investment
Total Cos
Total Benefit
 Cost-Benefi t analysis

3,250,000

2,750,000

2,250,000

1,750,000

1,250,000

750,000

250,000

1 2 3 4 5
Total Cost 1,980,583 2,025,356 2,080,264 2,144,680 2,218,001
Total Benefit 603,155 1,206,417 1,796,683 2,383,085 2,961,032
Interest 1 2 3 4 5
0.025 1.0250000 1.0506250 1.0768906 1.1038129 1.1314082

benefit 1 150000 160000 170000 180000 185000

benefit 2 2750 2750 2750 2750 2750
benefit 3 13500 13500 13500 13500 13500
benefit 4 20000 21000 25000 30000 32000

TB 186,250 197,250 211,250 226,250 233,250

PV TB 181,707 187,745 196,167 204,971 206,159 976,750
PV ALL 181,707 369,453 565,619 770,591 976,750

one time costs

cost 1 250000 0 0 0 0
cost 2 16000 0 0 0 0
cost 3 3725 0 0 0 0
cost 4 123625 0 0 0 0
cost 5 65000 0 0 0 0

ongoing costs
cost 6 54000 56000 70250 74500 75000
cost 7 12000 15000 17000 17500 18000
cost 8 6600 6600 6600 6600 6600

TC 530,950 77,600 93,850 98,600 99,600

PV TC 518,000 73,861 87,149 89,327 88,032 856,368
PV ALL 518,000 591,861 679,010 768,337 856,368

FV (344,700) 119,650 117,400 127,650 133,650

ALL (336,293) 113,885 109,018 115,645 118,127 120,381
ALL-ALL (336,293) (222,408) (113,391) 2,254 120,381
0 2.9529252 2.0401123 0.98050856 -0.01908182

ROI 14.06%
1,200,000

1,000,000

800,000

600,000

400,000

200,000

0
1 2 3 4 5