Project Management

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WebsiteBudgetTool.xls
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Web Site Budgeting Tool

[Company Name]
Web Site Budgeting Tool
[Date]
Gray cells contain calculations that should not be altered.
Company Data
Required rate of return 10.0%
Tax rate 30.0%
YEAR
0 1 2 3
Initial Investment in Web Site
Hardware (e.g., servers) $25,000
Software (e.g., e-commerce catalog software) 15,000
Development (e.g., third-party site design and development) 150,000
Total Initial Investments $190,000
Benefits from Web Site
Direct sales $15,000 $50,000 $75,000
Incremental sales resulting from enhanced promotional/salesperson effectiveness 25,000 25,000 25,000
Incremental sales resulting from increased partner participation 25,000 25,000 25,000
Reduced travel costs 25,000 25,000 25,000
Reduced customer service costs 50,000 50,000 50,000
Reduced printing and shipping costs 5,000 5,000 5,000
[Other benefits] 0 0 0
[Other benefits] 0 0 0
[Other benefits] 0 0 0
Total Benefits $145,000 $180,000 $205,000
Costs (Excluding Initial Capital Investments)
Cost of sales $7,500 $25,000 $37,500
Maintenance 15,000 15,000 15,000
Project management, customer support 35,000 35,000 35,000
Online advertising, search-engine registration 10,000 10,000 10,000
Depreciation on capital expenditures (calculation uses three-year period) 63,333 63,333 63,333
Hosting, domain-name registration 150 150 150
General and administrative (e.g., rent, insurance, exec. salaries) 10,000 10,000 10,000
[Other costs] 0 0 0
[Other costs] 0 0 0
[Other costs] 0 0 0
Total Costs $140,983 $158,483 $170,983
Net Benefits (Costs) $4,017 $21,517 $34,017
Tax 1,205 6,455 10,205
Value after tax 2,812 15,062 23,812
Depreciation added back 63,333 63,333 63,333
Cash flow ($190,000) $66,145 $78,395 $87,145
Cumulative cash flow ($190,000) ($123,855) ($45,460) $41,685
Evaluation Metrics
Net present value (NPV) $394
Internal rate of return (IRR) 10.1%
Payback period (in years) 2.52