Professional Documents
Culture Documents
PROJECT 1
(Insulating Office)
Costs
Discount factor
Discounted costs
Cumulative discounted costs
Benefits
Discount factor
Discounted benefits
Cumulative discounted benefits
4.8%
1
2
3
$18,000.00
$0.00
$0.00
0.95
0.91
0.87
$17,175.57
$0.00
$0.00
$17,175.57 $17,175.57 $17,175.57
$1,600.00
0.95
$1,526.72
$1,526.72
$1,600.00
0.91
$1,456.79
$2,983.51
$1,600.00
0.87
$1,390.07
$4,373.58
Cash flow
Discounted benefits - costs
Cumulative benefits - costs
-$16,400.00
-$15,648.85
-$15,648.85
$1,600.00
$1,456.79
-$14,192.06
$1,600.00
$1,390.07
-$12,802.00
NPV
ROI
-$4,699.92
-27%
Year
4
5
6
7
8
9
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
0.83
0.79
0.75
0.72
0.69
0.66
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$17,175.57 $17,175.57 $17,175.57 $17,175.57 $17,175.57 $17,175.57
$1,600.00
0.83
$1,326.40
$5,699.98
$1,600.00
0.79
$1,265.65
$6,965.63
$1,600.00
0.75
$1,207.68
$8,173.31
$1,600.00
$1,600.00
$1,600.00
0.72
0.69
0.66
$1,152.37
$1,099.59
$1,049.22
$9,325.68 $10,425.26 $11,474.49
$1,600.00
$1,326.40
-$11,475.59
$1,600.00
$1,265.65
-$10,209.94
$1,600.00
$1,207.68
-$9,002.26
$1,600.00
$1,152.37
-$7,849.90
$1,600.00
$1,099.59
-$6,750.31
$1,600.00
$1,049.22
-$5,701.08
Total
10
$0.00 $18,000.00
0.63
$0.00 $17,175.57
$17,175.57
$1,600.00 $16,000.00
0.63
$1,001.17 $12,475.66
$12,475.66
$1,600.00
$1,001.17
-$4,699.92
-$2,000.00
Year
650.00
692.25
737.25
785.17
836.20
890.56
948.44
1,010.09
1,075.75
1,145.67
PROJECT 1
(Insulate Office)
Cumulative discounted costs
Cumulative discounted benefits
1
$17,175.57
$1,526.72
2
$17,175.57
$2,983.51
3
$17,175.57
$4,373.58
PROJECT 2
(Mortgage Payment)
Cumulative discounted costs
Cumulative discounted benefits
Cumulati
1
2
3
Err:509
Err:509
Err:509
Err:509
Err:509
Err:509
PROJECT 3
(Invest in Business)
Cumulative
Err:509
Err:509
Err:509
Err:509
Err:509
Err:509
PROJECT 4
(Savings - no investment)
Cumulative discounted costs
Cumulative discounted benefits
Cu
1
2
3
Err:509
Err:509
Err:509
Err:509
Err:509
Err:509
Cumulative
4
$17,175.57
$5,699.98
Year
5
6
$17,175.57
$17,175.57
$6,965.63
$8,173.31
7
$17,175.57
$9,325.68
8
$17,175.57
$10,425.26
9
$17,175.57
$11,474.49
ct 1 (Insulate Office)
unted costs
10
Year
4
5
6
7
8
9
Err:509
Err:509
Err:509
Err:509
Err:509
Err:509
Err:509
Err:509
Err:509
Err:509
Err:509
Err:509
ted costs
10
Year
5
Err:509
Err:509
Err:509
Err:509
Err:509
Err:509
Err:509
Err:509
Err:509
Err:509
Err:509
Err:509
discounted costs
10
Year
4
5
6
7
8
9
Err:509
Err:509
Err:509
Err:509
Err:509
Err:509
Err:509
Err:509
Err:509
Err:509
Err:509
Err:509
k of Project 4 (Savings)
ted costs
10
10
$17,175.57
$12,475.66
10
Err:509
Err:509
10
Err:509
Err:509
10
Err:509
Err:509
Criteria
Projects calculated NPV
Projects calculated ROI
Payback analysis
Weight
Method 1 Method 1 Method 2 Method 2
35%
25
8.75
15
5.25
25%
25
6.25
25
6.25
40%
25
10
20
8.00
25
19.50
Method 4
Method 3
Payback analy
Projects calcu
Method 2
Projects calcu
Method 1
10
15
20
25
30
35
40
45
Payback analysis
Projects calculated ROI
Projects calculated NPV
40
45