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Compute For PBP (Include Year, Months, Days), NPV, and ROI

1. The document presents cost analysis data for an existing and proposed operation. 2. It calculates the savings, present value, and cumulative present value over 5 years. 3. The payback period is 1 year 10 months and 11 days, the net present value is $135,161.58, and the return on investment is 150.18%.

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alloysiusmark quilacio
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16 views1 page

Compute For PBP (Include Year, Months, Days), NPV, and ROI

1. The document presents cost analysis data for an existing and proposed operation. 2. It calculates the savings, present value, and cumulative present value over 5 years. 3. The payback period is 1 year 10 months and 11 days, the net present value is $135,161.58, and the return on investment is 150.18%.

Uploaded by

alloysiusmark quilacio
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Quilacio, Alloysius Mark A.

1. Compute the CBA


2. Compute the comparative table
3. Compute for PBP (include year, months,
days), NPV, and ROI

Development cost = 90,000.00

Existing operation cost = 178,584.00

Proposed operation cost = 125,184.00

Existing cost – proposed cost

= 178,584.00-126,184

=53,400.00

Comparative table

year Savings Interest rate Present value cpv Check mark


1 53,400.00 1.06 53,377.00 50,377.36 x
2 53,400.00 1.12 47,678.57 98,955.93 
3 53,400.00 1.19 44,874.00 42,929.88 
4 53,400.00 1.26 42,380.00 185,310.83 
5 53,400.00 1.34 39,850.00 225,161.58 

4. Payback period
=(90,000-50,377.36)/47,678.57)+21
=1.83( 1 year 10 months and 11 days)

Not present value

Nov

= sum of all the pv-dc

=225,161.58-90,000 = 135,161.58

Return of investment

=(npv/dc)*100%

=(135,161,58/90,000)*100%

=150.18%

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