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Cost-Benefit Analysis Chart
Project Consignment Store
Economic Feasibility Study
Cost-Benefit Analysis
Year of Project
0
1
2
3
4
Net Economic Benefit
$0
$12,750.00
$12,750.00
$12,750.00
$12,750.00
Discount Rate (6.5%)
1.00000
0.93897
0.88166
0.82785
0.77732
PV of Benefits
$0.00
$11,971.83
$11,241.16
$10,555.08
$9,910.87
NPV of All BENEFITS
$0.00
$11,971.83
$23,212.99
$33,768.06
$43,678.93
$0
($7,500.00)
($7,500.00)
($7,500.00)
($7,500.00)
Discount Rate (6.5%)
1.00000
0.93897
0.88166
0.82785
0.77732
PV of Recurring Costs
$0.00
($7,042.25)
($6,612.44)
($6,208.87)
($5,829.92)
($8,075)
($15,117)
($21,730)
($27,939)
($33,768)
One-Time COSTS
Recurring costs
NPV of All COSTS
TOTAL
$43,678.93
($8,075.0
0)
Overall NPV
($33,768)
$9,910.44
Overall ROI - (Overall NPV / NPV of all
COSTS)
0.29
Break-Even Analysis
Yearly NPV Cash Flow
($8,075)
$4,930
$4,629
$4,346
$4,081
Overall NPV Cash Flow
($8,075)
($3,145)
$1,483
$5,829
$9,910
Project break-even occurs between years 2
and 3
Use first year of positive cash flow to
calculate break-even fraction: ((4629 1483) / 4629) = .6796
Actual break-even occurred at around
1.6796 years
Note: All Dollar values have been rounded
to the nearest dollar
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