Year 0 1 2 3 4 5
2012 2013 2014 2015 2016 2017
Costs
Development
Reduced labor costs
HR Staff 1 @$37000 annually $1,850.00 $1,850.00 $1,850.00 $1,850.00 $1,850.00
HR Staff 2 @ 42000 annually $2,100.00 $2,100.00 $2,100.00 $2,100.00 $2,100.00
Reduced recruiting costs @11000 annually $11,000.00 $11,000.00 $11,000.00 $11,000.00 $11,000.00
Sub Total $14,950.00 $14,950.00 $14,950.00 $14,950.00 $14,950.00
Net Cash Flow -$25,500.00 $10,950.00 $10,950.00 $10,950.00 $10,950.00 $10,950.00
Total Benefits $74,750.00
Estimated Costs & Benefits – New Training System
Sub Total $25,500.00
Sub Total $4,000.00 $4,000.00 $4,000.00 $4,000.00 $4,000.00
Total Costs $45,500.00
Benefits
Year 0 1 2 3 4 5
Net Cash Flow (not including original investment) for years 2012-2017 $10,950.00 $10,950.00 $10,950.00 $10,950.00 $10,950.00
Net Cash Flow (including original investment) for years 2012-2017 -$25,500.00 $10,950.00 $10,950.00 $10,950.00 $10,950.00 $10,950.00
Payback Period = 3 years
Cumulative Cash Flow
Initial Investment = Year 0 -$25,500.00 -$25,500.00
Year 5 $10,950.00 $29,250.00
Accounting Rate of Return
Total initial investments Depreciation $25,500.00
Return on Investment (ROI) = 2.45%
Net Present Value =
Internal Rate of Return
Financial Models