Can someone help with calculate the breakeven point using the info in this spreadsheet? Thank You!
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1 2 Discount Rate (WACC) 7.50% 3 4 5 3 4 5 Total 6 7 Year Increased Sales Reduction in cost TOTAL BENEFITS: PV of BENEFITS: Cumulative PV of ALL BENEFITS $ $ $ $ $ 1 2 50,000.00 $ 130,000.00 $ 80,000.00 $ 85,000.00 $ 130,000.00 $ 215,000.00 $ 120,930.23 $ 186,046.51 $ 120,930.23 $ 306,976.74 $ 8 240,000.00 $ 87,000.00 $ 327,000.00 $ 263,222.11 $ 570,198.85 $ 300,000.00 $ 350,000.00 90,000.00 $ 92,000.00 390,000.00 $ 442,000.00 292,032.21 $ 307,878.92 $1,170,109.97 862,231.06 $1,170, 109.97 9 10 11 12 $ 13 14 Cost of Phone Hardware Cost of Computing Equipment Cost of Expert System Software Cost of Other Software Development & Installation TOTAL DEVELOPMENT COSTS: 150,000.00 $ 35,000.00 $ 150,000.00 $ 20,000.00 $ 575,000.00 $ 930,000.00 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 15 16 17 18 19 20 On-going Maintenance Internal Mainteanance & Support TOTAL OPERATIONAL COSTS: $ $ $ 25,000.00 $ 60,000.00 $ 85,000.00 $ 25,000.00 $ 60,000.00 $ 85,000.00 $ 25,000.00 $ 60,000.00 $ 85,000.00 $ 25,000.00 $ 25,000.00 60,000.00 $ 60,000.00 85,000.00 $ 85,000.00 21 22 23 TOTAL COSTS: PV of COSTS: Cumulative PV of ALL COSTS: $ $ 24 1,015,000.00 $ 85,000.00 $ 85,000.00 $ 85,000.00 $ 85,000.00 944,186.05 $ 73,553.27 $ 68,421.65 $ 63,648.05 $ 59,207.48 $1,209,016.50 944,186.05 $ 1,017,739.32 $1,086,160.97 $1,149, 809.02 $1,209,016.50 25 $ 26 27 28 Total Project Benefits - Costs: Yearly NPV: Cumulative NPV: $ $ $ (885,000.00) $ 130,000.00 $ (823,255.81) $ 112,493.24 $ (823,255.82) $ (710,762.57) $ 242,000.00 $ 305,000.00 $ 357,000.00 194,800.46 $ 228,384.16 $ 248,671.43 $ (38,906.52) (515,962.12) $ (287,577.95) $ (38,906.52) 29 30 31 Project NPV: $ 38,906.52 32 33 Return on Investment: (3.22) 34 35 Breakeven Point: 1 2 Discount Rate (WACC) 7.50% 3 4 5 3 4 5 Total 6 7 Year Increased Sales Reduction in cost TOTAL BENEFITS: PV of BENEFITS: Cumulative PV of ALL BENEFITS $ $ $ $ $ 1 2 50,000.00 $ 130,000.00 $ 80,000.00 $ 85,000.00 $ 130,000.00 $ 215,000.00 $ 120,930.23 $ 186,046.51 $ 120,930.23 $ 306,976.74 $ 8 240,000.00 $ 87,000.00 $ 327,000.00 $ 263,222.11 $ 570,198.85 $ 300,000.00 $ 350,000.00 90,000.00 $ 92,000.00 390,000.00 $ 442,000.00 292,032.21 $ 307,878.92 $1,170,109.97 862,231.06 $1,170, 109.97 9 10 11 12 $ 13 14 Cost of Phone Hardware Cost of Computing Equipment Cost of Expert System Software Cost of Other Software Development & Installation TOTAL DEVELOPMENT COSTS: 150,000.00 $ 35,000.00 $ 150,000.00 $ 20,000.00 $ 575,000.00 $ 930,000.00 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 15 16 17 18 19 20 On-going Maintenance Internal Mainteanance & Support TOTAL OPERATIONAL COSTS: $ $ $ 25,000.00 $ 60,000.00 $ 85,000.00 $ 25,000.00 $ 60,000.00 $ 85,000.00 $ 25,000.00 $ 60,000.00 $ 85,000.00 $ 25,000.00 $ 25,000.00 60,000.00 $ 60,000.00 85,000.00 $ 85,000.00 21 22 23 TOTAL COSTS: PV of COSTS: Cumulative PV of ALL COSTS: $ $ 24 1,015,000.00 $ 85,000.00 $ 85,000.00 $ 85,000.00 $ 85,000.00 944,186.05 $ 73,553.27 $ 68,421.65 $ 63,648.05 $ 59,207.48 $1,209,016.50 944,186.05 $ 1,017,739.32 $1,086,160.97 $1,149, 809.02 $1,209,016.50 25 $ 26 27 28 Total Project Benefits - Costs: Yearly NPV: Cumulative NPV: $ $ $ (885,000.00) $ 130,000.00 $ (823,255.81) $ 112,493.24 $ (823,255.82) $ (710,762.57) $ 242,000.00 $ 305,000.00 $ 357,000.00 194,800.46 $ 228,384.16 $ 248,671.43 $ (38,906.52) (515,962.12) $ (287,577.95) $ (38,906.52) 29 30 31 Project NPV: $ 38,906.52 32 33 Return on Investment: (3.22) 34 35 Breakeven Point
