| Section C: Cost-Benefit Analysis |
| Note: dollar amounts are formatted to no decimal places, with a comma separator for 1000s. Leave that setting as is. |
| ENTER YOUR ANSWERS IN THE CELLS FILLED IN TAN |
| Ensure that your Line Chart identifies which "series" are the Costs and which are the Benefits in its legend. |
| Do NOT leave the legend as "Series 1" and "Series 2". |
| X axis MUST be YEARS, Y axis dollar amounts |
| Set Major Y axis values fixed at $25000 intervals |
| Make sure your X axis is set to "position axis on tick marks" |
| The intersection of your X and Y axes MUST be 0,0 |
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
| Benefits | 0 | 33,000 | 34,000 | 35,000 | 38,000 | 41,000 |
| Cumulative Benefits | 0 | 33,000 |
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
| Costs | 60,000 | 12,000 | 12,000 | 12,000 | 12,000 | 12,000 |
| Cumulative Costs | 60,000 |
| Insert Line chart below this line |
| When will payback occur (in years)? Answer immediately below: |
| 4 ROI - compute it below. You MUST use the formula, don't just provide an answer. You may place the answer in the Word doc |
| but I MUST see the formula in the cell below. Use answers in Cells above in your formula, i.e., reference the CELL ADDRESSES in your formula |
| You MUST express your answer as a PERCENT, with one decimal place, in the shaded cell below |
| 5 NPV for project. Fill in the table below, then give the NPV where indicated. As above, fill in the tan cells |
| NOTE: The "Factor" is the Discount Rate you obtained from the table in the assignment Word doc, to 3 decimal places |
| Year | 0 | 1 | 2 | 3 | 4 | 5 | TOTAL |
| Benefits | | 33,000 | 34,000 | 35,000 | 38,000 | 41,000 | | | | Use the =SUM function. Adding all the cells such as =C50+D50+E50 etc. will result in a 1.5 pt deduction |
| Factor (to 3 decimal places) | 1.000 |
| PV of Benefits | 0 | | | | | | | | | Use the =SUM function. Adding all the cells such as =C50+D50+E50 etc. will result in a 1.5 pt deduction |
| Costs | 60,000 | 12,000 | 12,000 | 12,000 | 12,000 | 12,000 | | | | Use the =SUM function. Adding all the cells such as =C50+D50+E50 etc. will result in a 1.5 pt deduction |
| Factor | 1.000 |
| PV of Costs | 60,000 | | | | | | | | | Use the =SUM function. Adding all the cells such as =C50+D50+E50 etc. will result in a 1.5 pt deduction |
| Net Present Value | | DO NOT USE THE =NPV function. "Do the math" by performing the correct subtraction |
jackr.0035
workbookforcostbenifitassign.xlsx
