Note: Change the inputs, such as interest rate, number of years, costs, and bene

Question

Note: Change the inputs, such as interest rate, number of years, costs, and benefits.

Financial Analysis for Game Sync Created by: Date: Note: Change the inputs, such as interest rate, number of years, costs, and benefits. Formulas are entered in the Excel file used to create this template. Be sure to double-check the formulas based on the inputs. Discount rate 7% Assume the project is completed in Year 1 Year 0 1 2 3 Total Costs 100 100 100 100 Discount factor 1.00 0.93 0.87 0.82 Discounted costs 100 93 87 82 362 Benefits 0 200 200 200 Discount factor 1.00 0.93 0.87 0.82 Discounted benefits 0 187 175 163 525 Discounted benefits - costs (100) 93 87 82 162 NPV Cumulative benefits - costs (100) (7) 81 162 ROI 45% Payback before Year X Assumptions Enter assumptions here

Explanation / Answer

Discount Rate 7% Year 0 1 2 3 Total Costs        5,00,000          6,00,000          7,20,000          7,20,000 Disc Factor            1.0000             0.9346             0.8734             0.8163 Disc. Cost        5,00,000          5,60,748          6,28,876          5,87,734    22,77,358 Benefits                     -         10,00,000       20,00,000       20,00,000 Disc Factor            1.0000             0.9346             0.8734             0.8163 Disc. Benefits                     -            9,34,579       17,46,877       16,32,596    43,14,053 NPV (Disc Benefits-Disc cost)       -5,00,000          3,73,832       11,18,002       10,44,861    20,36,695 Cuumulative disc. Inflow       -5,00,000        -1,26,168          9,91,833       20,36,695 ROI=NPV/Disc cost 2036695/2277358 89% Payback period 1+126128/(991833+126168)               1.11 Years

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