Calculate the following financial analysis. Also show the process. Discount Rate
ID: 2642304 • Letter: C
Question
Calculate the following financial analysis. Also show the process.
Discount Rate = 5%
Year 0
Year 1
Year 2
Year 3
Costs:
Development Cost($)
120,000
Operating Cost
10000
15000
25000
Total Cost
Discounted Tot Cost
Cumulative Dis Cost
Benefits:
0
60000
70000
100000
Discounted Benefits
Cumulative Dis Benefits
Cum Dis Ben
Discount Rate = 5%
Year 0
Year 1
Year 2
Year 3
Costs:
Development Cost($)
120,000
Operating Cost
10000
15000
25000
Total Cost
Discounted Tot Cost
Cumulative Dis Cost
Benefits:
0
60000
70000
100000
Discounted Benefits
Cumulative Dis Benefits
Cum Dis Ben
Explanation / Answer
Financial Analysis: (Formulas are shown at the end for table)
Year 0 Year 1 Year 2 Year 3 Costs Development Cost 120,000 Operating Cost 0 10,000 15,000 25,000 Total Cost 120,000 10,000 15,000 25,000 Discounted Total Cost 0 9,523.81 13,605.44 21,595.94 Cumulative Dis Cost 0 9,523.81 23,129.25 44,725.19 Benefits 0 60,000 70,000 100,000 Discounted Benefits 0 57,142.86 63,492.06 86,383.76 Cumulative Disc Benefits 0 57,142.86 120,634.92 207,018.68 Cum Dis BenRelated Questions
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