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Assuming monetary benefits of a project at $85,000 per year, one-time costs of $75,000, recurring costs of $35,000 per year, a discount rate of 12
Assuming monetary benefits of a project at $85,000 per year, one-time costs of $75,000, recurring costs of $35,000 per year, a discount rate of 12 percent, and a 5-year time horizon. Please
- calculate the net benefit
- calculate the overall return on investment (ROI) of the project
- Estimate the break-even point
PVn = Y /(1+i)n the present value of year n with the discount rate i
ROI = (Net Benefit)/(Total Cost)
During the year with a positive overall cash flow, then
Break-Even Point = (Yearly Cash Flow Overall Cash Flow)/(Yearly Cash Flow)
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