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A

B
C
D
E
1 ET 3300: Example of Breakeven Analysis by Present Worth
2 i
0.05
3
Option A: (fill this in here)
Year
1st cost, P M&O (equiv PW of M&O, Total PW of
uniform), A
P
A, P
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43

1
2
3
4
5

100
100
100
100
100

50
50
50
50
50

47.62
92.97
136.16
177.30
216.47

B
1st cost, P M&O (equiv PW of M&O, Total PW of
uniform), A
P
B, P

147.62
192.97
236.16
277.30
316.47

50
50
50
50
50

75
75
75
75
75

71.43
139.46
204.24
265.95
324.71

400.00

350.00
300.00
250.00

Total PW of A, P

200.00

Total PW of B, P

150.00

100.00
50.00
0.00
1

Can create a PV function for each alternative, with nper as a variable (i.e., point to a cell with your value of n in it)
n
Opt A
Opt B
B-A

<--put your value for n here


<--put sum here as follows: = PV(rate,nper,pmt)+1st_cost (these are all cell references)
<--put sum here as follows: = PV(rate,nper,pmt)+1st_cost (these are all cell references)
0 =B31-B30

You can do this by varying n manually until B-A is zero OR use the goal seek:
Click Data > What if Analysis > Goal Seek, and here's what you can fill in.

121.43
189.46
254.24
315.95
374.71

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