ROI AND PAYBACK PERIOD of project

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bsman_3005_financial_analysis_template_1.xlsx
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Enter Data

Discount rate
YEARS: 1 2 3 4 Total
Costs
Discount factor 1 1 1.00 1.00
Discounted costs 0 0 0 0 0
Benefits
Discount factor 1.00 1.00 1.00 1.00
Discounted benefits 0 0 0 0 0
Discounted benefits - costs 0 0 0 0 0 NPV
Cumulative benefits - costs 0 0 0 0
ROI ERROR:#DIV/0!

Answer Sheet

Discount rate 10%
YEARS: 1 2 3 4 Total
Costs 1,750,000 400,000 400,000 400,000
Discount factor 0.9 0.81 0.73 0.66
Discounted costs 1,575,000 324,000 291,600 262,440 2,453,040
Benefits 0 950,000 950,000 950,000
Discount factor 0.90 0.81 0.73 0.66
Discounted benefits 0 769,500 692,550 623,295 2,085,345
Discounted benefits - costs -1,575,000 445,500 400,950 360,855 -367,695 NPV
Cumulative benefits - costs -1,575,000 -1,129,500 -728,550 -367,695
ROI 15%