Professional Documents
Culture Documents
Approximate
Dollar Value
$30,000.00
$45,000.00
$14,000.00
$100,000.00
$40,000.00
$125,000.00
$80,000.00
$434,000.00
Approximate
Dollar Value
(142,000.00)
(45,000.00)
(65,000.00)
(105,250.00)
(7,500.00)
(2,704.00)
(3,249.00)
(370,703.00)
Approximate
Dollar Value
($55,000.00)
($30,000.00)
($35,000.00)
($160,000.00)
($38,000.00)
($318,000.00)
14%
Year
Year
Benefits
Recurring Value of Benefits
Present Value Factor
Present Value of Benefits
Net Present Value of All Benefits
$0
1.000000
$0.00
$0.00
$434,000.00
0.877193
$380,701.75
$380,701.75
$434,000.00
0.769468
$333,948.91
$714,650.66
$434,000.00
0.674972
$292,937.64
$1,007,588.30
$434,000.00
0.592080
$256,962.84
$1,264,551.14
$434,000.00
0.519369
$225,406.00
$1,489,957.14
(370,703.00)
0.00
1.000000
0.00
(370,703.00)
(318,000.00)
0.877193
(278,947.37)
(649,650.37)
(318,000.00)
0.769468
(244,690.67)
(894,341.04)
(318,000.00)
0.674972
(214,640.94)
(1,108,981.98)
(318,000.00)
0.592080
(188,281.53)
(1,297,263.51)
(318,000.00)
0.519369
(165,159.24)
(1,462,422.75)
(370,703.00)
(370,703.00)
101,754.39
(268,948.61)
89,258.23
(179,690.38)
78,296.70
(101,393.68)
68,681.31
(32,712.37)
60,246.77
27,534.39
IRR:
(370,703.00)
116,000.00
116,000.00
116,000.00
116,000.00
116,000.00
Costs
One-Time Costs
Recurring Costs
Present Value Factor
Present Value of Recurring Costs
Net Present Value of All Costs
Overall Net Present Value
Years 4 and 5
Totals
$1,489,957.14
(1,462,422.75)
$27,534.39
17.049417%
8%
Year
Year
Benefits
Recurring Value of Benefits
Present Value Factor
Present Value of Benefits
Net Present Value of All Benefits
$0
1.000000
$0.00
$0.00
$434,000.00
0.925926
$401,851.85
$401,851.85
$434,000.00
0.857339
$372,085.05
$773,936.90
$434,000.00
0.793832
$344,523.19
$1,118,460.09
$434,000.00
0.735030
$319,002.96
$1,437,463.05
$434,000.00
0.680583
$295,373.11
$1,732,836.16
(370,703.00)
0.00
1.000000
0.00
(370,703.00)
(318,000.00)
0.925926
(294,444.44)
(665,147.44)
(318,000.00)
0.857339
(272,633.74)
(937,781.19)
(318,000.00)
0.793832
(252,438.65)
(1,190,219.84)
(318,000.00)
0.735030
(233,739.49)
(1,423,959.34)
(318,000.00)
0.680583
(216,425.46)
(1,640,384.79)
(370,703.00)
(370,703.00)
107,407.41
(263,295.59)
99,451.30
(163,844.29)
92,084.54
(71,759.75)
85,263.46
13,503.71
78,947.65
92,451.36
IRR:
(370,703.00)
116,000.00
116,000.00
116,000.00
116,000.00
116,000.00
Costs
One-Time Costs
Recurring Costs
Present Value Factor
Present Value of Recurring Costs
Net Present Value of All Costs
Overall Net Present Value
Years 4 and 5
Totals
$1,732,836.16
(1,640,384.79)
$92,451.36
17.049417%
10%
Year
Year
Benefits
Recurring Value of Benefits
Present Value Factor
Present Value of Benefits
Net Present Value of All Benefits
$0
1.000000
$0.00
$0.00
$434,000.00
0.909091
$394,545.45
$394,545.45
$434,000.00
0.826446
$358,677.69
$753,223.14
$434,000.00
0.751315
$326,070.62
$1,079,293.76
$434,000.00
0.683013
$296,427.84
$1,375,721.60
$434,000.00
0.620921
$269,479.85
$1,645,201.46
(370,703.00)
0.00
1.000000
0.00
(370,703.00)
(318,000.00)
0.909091
(289,090.91)
(659,793.91)
(318,000.00)
0.826446
(262,809.92)
(922,603.83)
(318,000.00)
0.751315
(238,918.11)
(1,161,521.93)
(318,000.00)
0.683013
(217,198.28)
(1,378,720.21)
(318,000.00)
0.620921
(197,452.98)
(1,576,173.19)
(370,703.00)
(370,703.00)
105,454.55
(265,248.45)
95,867.77
(169,380.69)
87,152.52
(82,228.17)
79,229.56
(2,998.61)
72,026.87
69,028.27
IRR:
(370,703.00)
116,000.00
116,000.00
116,000.00
116,000.00
116,000.00
Costs
One-Time Costs
Recurring Costs
Present Value Factor
Present Value of Recurring Costs
Net Present Value of All Costs
Overall Net Present Value
Years 4 and 5
Totals
$1,645,201.46
(1,576,173.19)
$69,028.27
17.049417%
12%
Year
Year
Benefits
Recurring Value of Benefits
Present Value Factor
Present Value of Benefits
Net Present Value of All Benefits
$0
1.000000
$0.00
$0.00
$434,000.00
0.892857
$387,500.00
$387,500.00
$434,000.00
0.797194
$345,982.14
$733,482.14
$434,000.00
0.711780
$308,912.63
$1,042,394.77
$434,000.00
0.635518
$275,814.85
$1,318,209.62
$434,000.00
0.567427
$246,263.26
$1,564,472.87
(370,703.00)
0.00
1.000000
0.00
(370,703.00)
(318,000.00)
0.892857
(283,928.57)
(654,631.57)
(318,000.00)
0.797194
(253,507.65)
(908,139.22)
(318,000.00)
0.711780
(226,346.12)
(1,134,485.34)
(318,000.00)
0.635518
(202,094.75)
(1,336,580.09)
(318,000.00)
0.567427
(180,441.74)
(1,517,021.83)
(370,703.00)
(370,703.00)
103,571.43
(267,131.57)
92,474.49
(174,657.08)
82,566.51
(92,090.57)
73,720.10
(18,370.48)
65,821.52
47,451.04
IRR:
(370,703.00)
116,000.00
116,000.00
116,000.00
116,000.00
116,000.00
Costs
One-Time Costs
Recurring Costs
Present Value Factor
Present Value of Recurring Costs
Net Present Value of All Costs
Overall Net Present Value
Years 4 and 5
Totals
$1,564,472.87
(1,517,021.83)
$47,451.04
17.049417%
16%
Year
Year
Benefits
Recurring Value of Benefits
Present Value Factor
Present Value of Benefits
Net Present Value of All Benefits
$0
1.000000
$0.00
$0.00
$434,000.00
0.862069
$374,137.93
$374,137.93
$434,000.00
0.743163
$322,532.70
$696,670.63
$434,000.00
0.640658
$278,045.43
$974,716.06
$434,000.00
0.552291
$239,694.34
$1,214,410.40
$434,000.00
0.476113
$206,633.05
$1,421,043.45
(370,703.00)
0.00
1.000000
0.00
(370,703.00)
(318,000.00)
0.862069
(274,137.93)
(644,840.93)
(318,000.00)
0.743163
(236,325.80)
(881,166.73)
(318,000.00)
0.640658
(203,729.14)
(1,084,895.87)
(318,000.00)
0.552291
(175,628.57)
(1,260,524.44)
(318,000.00)
0.476113
(151,403.94)
(1,411,928.38)
(370,703.00)
(370,703.00)
100,000.00
(270,703.00)
86,206.90
(184,496.10)
74,316.29
(110,179.81)
64,065.77
(46,114.05)
55,229.11
9,115.06
IRR:
(370,703.00)
116,000.00
116,000.00
116,000.00
116,000.00
116,000.00
Costs
One-Time Costs
Recurring Costs
Present Value Factor
Present Value of Recurring Costs
Net Present Value of All Costs
Overall Net Present Value
Years 4 and 5
Totals
$1,421,043.45
(1,411,928.38)
$9,115.06
17.049417%
Years
0
Net Present Value of All Benefits
Net Present Value of All Costs
$0.00
$ 370,703.00
1
$ 380,701.75
$ 649,650.37
2
3
$ 714,650.66 $ 1,007,588.30
$ 894,341.04 $ 1,108,981.98
$1,600,000.00
$1,400,000.00
$1,200,000.00
$1,000,000.00
$800,000.00
$600,000.00
$400,000.00
$200,000.00
$0.00
0
2
3
Years
4
5
$ 1,264,551.14 $ 1,489,957.14
$ 1,297,263.51 $ 1,462,422.75
The discount rate is 14% and the internal rate of return is 17%. The project is justifiable because 17% is greater than 14%.
I added the IRR to Economic Feasibility Worsheet to f=get this answer
Approximate
Dollar Value
$30,000.00
$77,500.00
$14,000.00
$100,000.00
$40,000.00
$125,000.00
$80,000.00
$466,500.00
14%
Year
Year
Benefits
Recurring Value of Benefits
Present Value Factor
Present Value of Benefits
Net Present Value of All Benefits
$0
1.000000
$0.00
$0.00
$466,500.00
0.877193
$409,210.53
$409,210.53
$466,500.00
0.769468
$358,956.60
$768,167.13
$466,500.00
0.674972
$314,874.21
$1,083,041.34
$466,500.00
0.592080
$276,205.45
$1,359,246.79
$466,500.00
0.519369
$242,285.48
$1,601,532.27
(370,703.00)
0.00
1.000000
0.00
(370,703.00)
(318,000.00)
0.877193
(278,947.37)
(649,650.37)
(318,000.00)
0.769468
(244,690.67)
(894,341.04)
(318,000.00)
0.674972
(214,640.94)
(1,108,981.98)
(318,000.00)
0.592080
(188,281.53)
(1,297,263.51)
(318,000.00)
0.519369
(165,159.24)
(1,462,422.75)
(370,703.00)
(370,703.00)
130,263.16
(240,439.84)
114,265.93
(126,173.91)
100,233.27
(25,940.64)
87,923.92
61,983.28
77,126.25
139,109.52
IRR:
(370,703.00)
148,500.00
148,500.00
148,500.00
148,500.00
148,500.00
Costs
One-Time Costs
Recurring Costs
Present Value Factor
Present Value of Recurring Costs
Net Present Value of All Costs
Overall Net Present Value
Years 4 and 5
Totals
$1,601,532.27
(1,462,422.75)
$139,109.52
28.724918%
Approximate
Dollar Value
(142,000.00)
(45,000.00)
(65,000.00)
(120,000.00)
(7,500.00)
(2,704.00)
(3,249.00)
(385,453.00)
14%
Year
Year
Benefits
Recurring Value of Benefits
Present Value Factor
Present Value of Benefits
Net Present Value of All Benefits
$0
1.000000
$0.00
$0.00
$466,500.00
0.877193
$409,210.53
$409,210.53
$466,500.00
0.769468
$358,956.60
$768,167.13
$466,500.00
0.674972
$314,874.21
$1,083,041.34
$466,500.00
0.592080
$276,205.45
$1,359,246.79
$466,500.00
0.519369
$242,285.48
$1,601,532.27
(385,453.00)
0.00
1.000000
0.00
(385,453.00)
(318,000.00)
0.877193
(278,947.37)
(664,400.37)
(318,000.00)
0.769468
(244,690.67)
(909,091.04)
(318,000.00)
0.674972
(214,640.94)
(1,123,731.98)
(318,000.00)
0.592080
(188,281.53)
(1,312,013.51)
(318,000.00)
0.519369
(165,159.24)
(1,477,172.75)
(385,453.00)
(385,453.00)
130,263.16
(255,189.84)
114,265.93
(140,923.91)
100,233.27
(40,690.64)
87,923.92
47,233.28
77,126.25
124,359.52
IRR:
(385,453.00)
148,500.00
148,500.00
148,500.00
148,500.00
148,500.00
Costs
One-Time Costs
Recurring Costs
Present Value Factor
Present Value of Recurring Costs
Net Present Value of All Costs
Overall Net Present Value
Years 4 and 5
Totals
$1,601,532.27
(1,477,172.75)
$124,359.52
26.749302%
14%
Year
Year
Benefits
Recurring Value of Benefits
Present Value Factor
Present Value of Benefits
Net Present Value of All Benefits
$0
1.000000
$0.00
$0.00
$434,000.00
0.877193
$380,701.75
$380,701.75
$434,000.00
0.769468
$333,948.91
$714,650.66
$434,000.00
0.674972
$292,937.64
$1,007,588.30
$434,000.00
0.592080
$256,962.84
$1,264,551.14
$434,000.00
0.519369
$225,406.00
$1,489,957.14
(370,703.00)
0.00
1.000000
0.00
(370,703.00)
(318,000.00)
0.877193
(278,947.37)
(649,650.37)
(318,000.00)
0.769468
(244,690.67)
(894,341.04)
(318,000.00)
0.674972
(214,640.94)
(1,108,981.98)
(318,000.00)
0.592080
(188,281.53)
(1,297,263.51)
(318,000.00)
0.519369
(165,159.24)
(1,462,422.75)
(370,703.00)
(370,703.00)
101,754.39
(268,948.61)
89,258.23
(179,690.38)
78,296.70
(101,393.68)
68,681.31
(32,712.37)
60,246.77
27,534.39
IRR:
(370,703.00)
116,000.00
116,000.00
116,000.00
116,000.00
116,000.00
Costs
One-Time Costs
Recurring Costs
Present Value Factor
Present Value of Recurring Costs
Net Present Value of All Costs
Overall Net Present Value
Years 4 and 5
Totals
$1,489,957.14
(1,462,422.75)
$27,534.39
17.049417%
IRR
15.70%
27.80%
18.90%
23.70%
Looking at the IRR's,management should not fund the custom order-tracking system because it has a low
IRR(17%) compared to the proposed projects listed above