This homework assignment involves the purchase of a UPLC/MS/MS instrument. This instrument is used for multiple analyses including fumonisins, drugs, and aflatoxin.

Cost savings are presented in an enterprise budget format, where the cost of fumonisin analysis using HPLC and UPLC/MS/MS are presented in Table 1.For this homework, you should use the total per sample cost.

Table 1. Enterprise budget for sample analysis using HPLC and UPLC/MS/MS

HPLC			UPLC
Category	Total Cost ($)	Per sample ($)	Category	Total Cost ($)	Per sample ($)
Supplies	501	11	Supplies	429	9
Personnel	580	13	Personnel	220	5
Lab	26,626	53	Lab	13,313	27
Utilities	9,259	19	Utilities	4,629	9
Total	36,996	96	Total	18591	50

Table 2. Example Table format for NPV

					YEAR
	0	1	2	3	4	5	6	7
Investment on New Instrument
Total Cost Savings for 1000 samples using UPLC over HPLC
Present Value (PV)
Net Present Value (NPV)

Directions for completing assignment

reconstruct table 2 in Excel and then explain briefly if the project (purchase of the UPLC/MS/MS) is worth more than what it costs and by how much (NPV) using sample cost savings for the new instrument. Use Table 2 as an aid to set up this capital budgeting project in Excel. Assume 1000 samples per year, a 7 year instrument life cycle and an 11% rate of return and a UPLC/MS/MS initial investment cost of $300,000, calculate the net present value of this investment based on the fumonisin enterprise budget.