ABOUT THIS TEMPLATE

Track Initial Investment in Web Site, its Benefits, and Costs using this Web Site Budgeting Tool.

Fill in Company Name and Date.

Enter details in tables to auto calculate Totals and Evaluation Metrics.

Note:

Additional Instructions have been provided in column A of BUDGET TOOL worksheet. This text has
been intentionally hidden. To remove text, select column A, then select DELETE. To unhide text,
select column A, then change font color.

To learn more about tables in worksheet, press SHIFT and then F10 within a table, select the TABLE
option, and then select ALTERNATIVE TEXT.
Create Website Budget in this worksheet. Helpful instructions on how to use this worksheet are in cells in this column. Arrow down to get started.

EnCompany Name
Ti Web Site Budgeting Tool
EnDate

Ti Gray cells contain calculations that should not be altered.

EnCompany Data Rate
Required rate of return 10%
Tax rate 30%

EnInitial Investment in Web Site YEAR 1 2 3

Hardware (e.g., servers) $25,000.00
Software (e.g., e-commerce catalog software) $15,000.00
Development (e.g., third-party site design and development) $150,000.00
Total Initial Investments $190,000.00

EnBenefits from Web Site YEAR 1 2 3

Direct sales $15,000.00 $50,000.00 $75,000.00
Incremental sales resulting from enhanced promotional/salesperson
effectiveness $25,000.00 $25,000.00 $25,000.00
Incremental sales resulting from increased partner participation $25,000.00 $25,000.00 $25,000.00
Reduced travel costs $25,000.00 $25,000.00 $25,000.00
Reduced customer service costs $50,000.00 $50,000.00 $50,000.00
Total Benefits $140,000.00 $175,000.00 $200,000.00

EnCosts (Excluding Initial Capital Investments) YEAR 1 2 3

Cost of sales $7,500.00 $25,000.00 $37,500.00
Maintenance $15,000.00 $15,000.00 $15,000.00
Project management, customer support $35,000.00 $35,000.00 $35,000.00
Online advertising, search-engine registration $10,000.00 $10,000.00 $10,000.00

Depreciation on capital expenditures (calculation uses three-year period) $63,333.33 $63,333.33 $63,333.33
Total Costs $130,833.33 $148,333.33 $160,833.33

VaTotals YEAR 1 2 3
Net Benefits (Costs) $9,166.67 $26,666.67 $39,166.67
Tax $2,750.00 $8,000.00 $11,750.00
Value after tax $6,416.67 $18,666.67 $27,416.67
Depreciation added back $63,333.33 $63,333.33 $63,333.33
Cash flow -$190,000.00 $69,750.00 $82,000.00 $90,750.00
Cumulative cash flow -$190,000.00 ($120,250.00) ($38,250.00) $52,500.00

EvEvaluation Metrics Values

Net present value (NPV) $9,359.50
Internal rate of return (IRR) 12.66%
Payback period (in years) 2.42