Question: Using the Excel spreadsheet attached HERE , complete the Cost-Benefit Analysis You are to display the benefits and costs also adjusted to present value with
Using the Excel spreadsheet attached HERE, complete the Cost-Benefit Analysis You are to display the benefits and costs also adjusted to present value with a Discount Rate of 4%. Complete all areas highlighted in Yellow.
| Y0 | Y1 | Y2 | Y3 | Y4 | Y5 | |||||
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | Use a 4% Discount Rate | ||||
| Increased Sales | $ - | $ 250,000.00 | $ 300,500.00 | $ 214,570.00 | $ 300,500.00 | $ 300,500.00 | ||||
| Reduction in customer complaint calls | $ - | $ 70,000.00 | $ 70,000.00 | $ 70,000.00 | $ 70,000.00 | $ 70,000.00 | ||||
| Reduced inventory costs | $ - | $ 68,000.00 | $ 68,000.00 | $ 68,000.00 | $ 68,000.00 | $ 68,000.00 | ||||
| Total Benefits | ||||||||||
| PV of Benefits | ||||||||||
| PV of All Benefits | ||||||||||
| 2 Servers @ 125,000 | $ 250,000.00 | |||||||||
| Printer | $ 100,000.00 | |||||||||
| Software Licenses | $ 34,825.00 | |||||||||
| Server Software | $ 10,945.00 | |||||||||
| Development labor | $ 1,236,525.00 | |||||||||
| Total Development Costs | ||||||||||
| Hardware | $ 54,000.00 | $ 81,261.00 | $ 81,261.00 | $ 81,261.00 | $ 81,261.00 | $ 81,261.00 | ||||
| Software | $ 15,000.00 | $ 20,000.00 | $ 20,000.00 | $ 20,000.00 | $ 20,000.00 | $ 20,000.00 | ||||
| Operational Labor | $ 111,788.00 | $ 116,260.00 | $ 116,260.00 | $ 120,910.00 | $ 125,746.00 | $ 130,776.00 | ||||
| Total Operational Costs: | ||||||||||
| Total Costs | ||||||||||
| PV of Costs | ||||||||||
| PV of All Costs | ||||||||||
| Total Project benefits Costs | ||||||||||
| Yearly NPV | ||||||||||
| Cumulative NPV | ||||||||||
| Return On Investment | ||||||||||
| Break-even point | ||||||||||
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