Year Project1 Project2 Project3 Project40 -100000 -1000000 -100000 -1200001 10000 200000 30000 300002 10000 200000 30000 300003 10000 200000 30000 300004 20000 200000 30000 300005 100000 300000 30000 75000

NPV $620.92 ($179,750.51) $13,723.60 $21,665.06 $100,620.92

IRR 10% 3% 15% 16%

I P I*P800000 0.1 80000650000 0.6 390000100000 0.3 30000

Expected Income 500000$1,339,594.29

-750000300000300000300000300000

NPV $200,959.63 IRR 22%

Yr Benefit Cost Cash Flow1 0 5000 -5000

Project 1 2 2000 1000 10003 3000 1000 20004 4000 1000 30005 5000 1000 4000

NPV $2,547.98

1 1000 2000 -10002 2000 2000 0

Project 2 3 4000 2000 20004 4000 2000 20005 4000 2000 2000

NPV $3,521.55

Cash Flow Cash Flow-70000 -10000012000 1000015000 1000018000 1000021000 2000026000 99000

NPV ($2,683.31) $0.00 IRR -2% Return after 4 yrs IRR 10%

9%-44%

Yr Cash Flow0 -7500001 3000002 3000003 3000004 300000

NPV $200,959.63 IRR 22%

Discount Rate 5%Develop In-house

Year Cost Discount Factor0 -480000 11 180000 0.952 200000 0.93 225000 0.86

OutsourceYear

0 -6200001 600002 800003 110000

Discounted Cost Benefit Discount Factor480000 0 1171000 350000 0.95180000 350000 0.9193500 650000 0.86

0450000550000650000

Discounted Benefit Discounted Benefit Cost Cummulative Benefits Cost0 -480000 -480000

332500 161500 318500315000 135000 453500559000 365500 819000

182000 1111000

Year Cost DF Discount Cost0 -140000 1 1400001 40000 0.93 372002 40000 0.86 344003 40000 0.79 31600

243200

Benefits DF Discounted Benefits Discounted Benefits Cost0 1 0 -140000

200000 0.93 186000 148800200000 0.86 172000 137600200000 0.79 158000 126400

516000 272800

Cummulative Benefits Cost cost - benefit-140000 -140000

8800 160000146400 160000

272800 160000

NPV $272,335.52 ROI 112.1710526316Payback yr 1st yr

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