Financial Analysis for Project One

Created by: I Putu Gede Geo R B NIM : E1700869

Discount rate 9.00%

Year
1 2 3 4 Total
Costs 100,000 30,000 30,000 30,000
Discount factor 0.92 0.84 0.77 0.71
Discounted costs 92,000 25,200 23,100 21,300 161,600

Benefits 0 100,000 100,000 100,000

Discount factor 0.92 0.84 0.77 0.71
Discounted benefits 0 84,000 77,000 71,000 232,000

Discounted benefits - costs (92,000) 58,800 53,900 49,700 70,400 NPV

Cumulative benefits - costs (92,000) (33,200) 20,700 70,400

ROI 44%
Payback In Year 3
Assumptions
Assume the project is completed in Year 1
250,000

200,000

161,000

150,000

140,300

117,200

100,000
92,000
84,000

50,000

00

Year
92,00000 117,200 140,300 161,600
0 84,000 161,000 232,000
Year
 232,000

161,000 161,600

140,300

Cumulative cost
cumul ative benefit

Year
Year
 Financial Analysis for Project Two
Created by: I Putu Gede Geo R B NIM : E1700869

Discount rate 9.00%

Year
1 2 3 4 Total
Costs 50,000 50,000 50,000 50,000
Discount factor 0.92 0.84 0.77 0.71
Discounted costs 46,000 42,000 38,500 35,500 162,000

Benefits 40,000 60,000 80,000 100,000

Discount factor 0.92 0.84 0.77 0.71
Discounted benefits 36800 50,400 61,600 71,000 219,800

Discounted benefits - costs (9,200) 8,400 23,100 35,500 57,800 NPV

Cumulative benefits - costs (9,200) (800) 22,300 57,800

ROI 36%
Payback In Year 3
Assumptions
Assume the project is completed in Year 1
for this Project I assume that the discount rate is 9%