Project Management Assignment 1
draculaghost2007
m2_activity2-5_npv_roi_template_2.xlsSheet1
| Discount rate | 4% | |||||
| Year | ||||||
| 1 | 2 | 3 | 4 | Total | ||
| Costs | 150,000 | 5,000 | 5,000 | 4,000 | ||
| Discount factor | 0.96 | 0.92 | 0.89 | 0.85 | ||
| Discounted costs | 144,231 | 4,623 | 4,445 | 3,419 | 156,718 | |
| Benefits | 0 | 80,000 | 80,000 | 80,000 | ||
| Discount factor | 0.96 | 0.92 | 0.89 | 0.85 | ||
| Discounted benefits | 0 | 73,964 | 71,120 | 68,384 | 213,469 | |
| Discounted benefits - costs | (144,231) | 69,342 | 66,675 | 64,965 | 56,751 | NPV |
| Cumulative benefits - costs | (144,231) | (74,889) | (8,214) | 56,751 | ||
| ROI | 36% | |||||
| Payback in Year 4 |
