Business Systems Calculator

Adapted from "The Project Manager's MBA" by D.J.Cohen and R.J.Graham

Project

• Project duration (months)

• Total project salaries

• Total project investment

• Project investment with capital charge

Market Demand

• Length of time until the market for this product/service begins (months)

• Length of time after introduction to peak of market (months)

• Length of time after peak of market ends (months)

• Sales volume at market maturity (units/month)

Revenues

• Price ($/unit)

• Price deterioration (%/year)

• Expected market share if first to market (%)

• Expected market share otherwise (%)

Costs

• Costs of goods sold ($/unit)

• Cost reduction (%/year)

• Selling (variable), general and administration (% of revenues)

• Selling (fixed), general and administration ($/month)

• Depreciation ($/month)

• Other expenses ($/month)

• Tax rate (%)

• Company weighted average cost of capital (WACC) (%/year)

Breakeven

• Approximate time to breakeven (months)

Net Cash Flow (NCF)

• Period of time to be considered in NCF calculation (months)

• Net cash flow without capital charges ($)

• Net cash flow with capital charges ($)

• Net present value ($)