How to Use This Document

This document includes the Cost & Benefits worksheet and the ROI calculations for the ABC
MedTech Case.

Note all cells in this document are locked to prevent the data from being accidentally edited.

When you are ready to calculate the ROI for your own business case, open the ROI Worksheet
Template to start capturing the numbers for your project.

For more information in the HBR Guide to Building Your Business Case, read:
Chapter 9: Estimate Costs and Benefits
Chapter 10: Calculate ROI

FOUR WAYS TO CALCULATE ROI

Method Answers the question… Expressed in…

How many sales do we

Breakeven
need to recoup the Units sold
Analysis
investment?

How long will it take to

Payback Period Months or years
recoup the investment?

Net Present How much is this project

Dollars
Value (NPV) worth to the business?

What rate of return will

Internal Rate of
this project deliver over Percentage
Return (IRR)
its lifecycle?
sheet and the ROI calculations for the ABC

ent the data from being accidentally edited.

own business case, open the ROI Worksheet

project.

ding Your Business Case, read:

Typically used for…

Market-focused projects, such as

product development; entrepreneurial
endeavors

Projects with a heavy upfront

investment, such as facilities projects;
productivity projects that accumulate
benefits over time

Projects with large expenditures

Projects that the company reports on

externally, especially those that require
you to borrow money
Costs and Benefits Worksheet: ABC MedTech Case

• A worksheet like this is used to capture costs and benefits before calculating ROI on the subsequ
• On this worksheet, each column represents a calendar year with the first column being the curre
• Costs and benefits (mouse over the red triangle for a quick explanation of categories) are captur
• The total or annual amount is presented in Column F and then costs are spread into appropriate
own document.
• In the Project Investment & Operating Cost categories, project costs are entered as "positive" nu
• In the Project Benefits categories, benefits are entered as "positive" numbers and any off-setting
• Rationales, assumptions and data sources are captured in Column S.
• For more information in the HBR Guide to Building Your Business Case, read Chapter 9: Estima

Project Investment
Capital Expenditures Amount 2012 2013
Production Test Equipment (2 systems) $ 220,000 $ 99,000
Sensor Test Equipment (2 systems) $ 80,000 $ 36,000
Total Capital Costs $ 300,000
Project Expense (Onetime Expense)
Prototype Development $ 80,000 $ 80,000
Product Design and Development $ 350,000 $ 350,000
Ops Processes Design & Development $ 175,000 $ 175,000
Unit & Integration Testing $ 100,000 $ 100,000
System Qualification Testing $ 50,000 $ 50,000
Pilot Run & Operator Training $ 200,000 $ 200,000
Market Launch $ 60,000 $ 60,000
Sales Training $ 24,000 $ 24,000
Total Project Expense $ 1,039,000
Total Project Investment $ 1,339,000 $ 1,039,000 $ 135,000

Operating Costs (OpEx) Amount 2012 2013

Operating test equipment maintenance $20,000/yr $ 20,000
Total Operating Costs $ - $ 20,000

Project Benefits (amount & timing) Amount 2012 2013

Sales of Century 2000 (gross profit) $3,000/unit $ 750,000
Cannibalized sales of old Century platform $800/unit $ (60,000)
Total Benefits $ - $ 690,000

Annual Total $(1,039,000) $ 535,000

Cumulative Total $(1,039,000) $ (504,000)
culating ROI on the subsequent tabs.
first column being the current year.
on of categories) are captured on this page.
are spread into appropriate years. Make sure to check the estimated total in column F against the summed total in co

are entered as "positive" numbers. The spreadsheet then converts those to costs.
numbers and any off-setting costs as "negative" numbers.
.
se, read Chapter 9: Estimate Costs and Benefits.

2014 2015 2016 2017 2018 2019 2020

$ 55,000 $ 33,000 $ 22,000 $ 11,000
$ 20,000 $ 12,000 $ 8,000 $ 4,000

$ 75,000 $ 45,000 $ 30,000 $ 15,000 $ - $ - $ -

2014 2015 2016 2017 2018 2019 2020

$ 20,000 $ 20,000 $ 20,000 $ 20,000
$ 20,000 $ 20,000 $ 20,000 $ 20,000 $ - $ - $ -

2014 2015 2016 2017 2018 2019 2020

$ 1,050,000 $ 1,050,000 $ 1,050,000 $ 900,000
$ (80,000) $ (40,000)
$ 970,000 $ 1,010,000 $ 1,050,000 $ 900,000 $ - $ - $ -

$ 875,000 $ 945,000 $ 1,000,000 $ 865,000 $ - $ - $ -

$ 371,000 $ 1,316,000 $ 2,316,000 $ 3,181,000 $ 3,181,000 $ 3,181,000 $ 3,181,000
t the summed total in column Q in your

Estimate Rationale
2021 Total
$ 220,000 20% added to Century price for complexity
$ 80,000 Quote from RMD, Inc.

$ 80,000 Based on SSP project cost plus 20%

$ 350,000 Based on SSP project cost plus 20%
$ 175,000 Revise current Century process
$ 100,000 Based on SSP project cost plus 20%
$ 50,000 Per standard 122.45
$ 200,000 20 unit pilot run
$ 60,000 Estimate from JM in Mkt
$ 24,000 Train 50 reps, $14,000 dev

$ - $ 1,339,000

2021 Total
$ 100,000 Based upon current Century equipment
$ - $ 100,000

2021 Total
$ 4,800,000 Sales projection from Tom S
$ (180,000) Sales projection from Tom S
$ - $ 4,620,000

$ -
$ 3,181,000
Breakeven Analysis: ABC MedTech Case
• Entries are auto-populating from the "Cost & Benefits" worksheet.
• Breakeven analysis does not require that the costs and benefits be spread over some number of
years.
• Instructions for calculating are at the bottom of this worksheet.
• For more information in the HBR Guide to Building a Business Case, read the "Breakeven Analysis
section in Chapter 10: Calculate ROI.
Project Investment
Capital Expenditures Amount
Production Test Equipment (2 systems) $ 220,000
Sensor Test Equipment (2 systems) $ 80,000
Total Capital Costs $ 300,000
Project Expense (One-time Expense)
Prototype Development $ 80,000
Product Design and Development $ 350,000
Ops Processes Design & Development $ 175,000
Unit & Integration Testing $ 100,000
System Qualification Testing $ 50,000
Pilot Run & Operator Training $ 200,000
Market Launch $ 60,000
Sales Training $ 24,000
Total Project Expense $ 1,039,000
Total Project Investment $ 1,339,000

Operating Costs (OpEx) Amount

Operating test equipment maintenance $20,000/yr
Total Operating Costs

Project Benefits (amount & timing) Amount

Sales of Century 2000 (gross profit) $3,000/unit
Cannibalized sales of old Century platform $800/unit
Total Benefits

Breakeven is 453 units

To calculate:
1) First determine the gross profit margin from selling one unit of your product:
Revenue - COGS = gross profit margin.
Gross profit margin per unit in this example is $3,000, as shown on cell F25.
2) Then determine the net project cost by adding an annual increment of the operations costs (Row
21) to total project investment (Row 18).
$20,000 + $1,339,000 = $1,359,000
3) With those numbers calculate how many units you need to sell for your sales benefits to equal you
net costs:
Units sold = net project cost/gross profit margin
Units sold = $1,359,000 / $3,000 = 453 units sold
Round the units sold up to a whole number; this is how many units need to be sold for the project to
break even.
efits" worksheet.
s and benefits be spread over some number of

s worksheet.
g a Business Case, read the "Breakeven Analysis"

Estimate Rationale

20% added to Century price for complexity

Quote from RMD, Inc.

Based on SSP project cost plus 20%

Based on SSP project cost plus 20%
Revise current Century process
Based on SSP project cost plus 20%
Per standard 122.45
20 unit pilot run
Estimate from JM in Mkt
Train 50 reps, $14,000 dev

Based upon current Century equipment

Sales projection from Tom S

Sales projection from Tom S
lling one unit of your product:

ple is $3,000, as shown on cell F25.

an annual increment of the operations costs (Row

ou need to sell for your sales benefits to equal your

rgin
its sold
how many units need to be sold for the project to
Type 0 Payback: ABC MedTech Case

• NOTE: For an explanation of the difference between Type 0 and Type 1 Payback calculations, read
Case. Also, please note that only the "Amount" (Column F) data auto-populates from the "Cost & Ben
first year on the "Cost & Benefits" worksheet.
• The Project column (Column G) contains all of the Project Investment costs no matter how long the
• The Year 1 column should start on the day the project ends and benefits start, and continues for on
anniversary of the project end date.
• Instructions for calculating the payback period are at the bottom of this worksheet.

Project Investment
Capital Expenditures Amount Project Year 1
Production Test Equipment (2 systems) $ 220,000 $ - $ 99,000
Sensor Test Equipment (2 systems) $ 80,000 $ - $ 36,000
Total Capital Costs $ 300,000
Project Expense (One-time Expense)
Prototype Development $ 80,000 $ 80,000
Product Design and Development $ 350,000 $ 350,000
Ops Processes Design & Development $ 175,000 $ 175,000
Unit & Integration Testing $ 100,000 $ 100,000
System Qualification Testing $ 50,000 $ 50,000
Pilot Run & Operator Training $ 200,000 $ 200,000
Market Launch $ 60,000 $ 60,000
Sales Training $ 24,000 $ 24,000
Total Project Expense $ 1,039,000
Total Project Investment $ 1,339,000 $ 1,039,000 $ 135,000

Operating Costs (OpEx) Amount Project Year 1

Operating test equipment maintenance $20,000/yr $ 20,000
Total Operating Costs $ - $ 20,000

Project Benefits (amount & timing) Amount Project Year 1

Sales of Century 2000 (gross profit) $3,000/unit $ 781,250
Cannibalized sales of old Century platform $800/unit $ (60,000)
Total Benefits $ - $ 721,250

Annual Total $ (1,039,000) $ 566,250

Cumulative Total $ (1,039,000) $ (472,750)
To calculate:
1) Find where the Cumulative Total (Row 30) crosses from negative to positive. In this example this
plus a fraction of the following year.
2) To determine the fraction, divide the previous year's cumulative total (highlighted in yellow), by the
which equals .54. Then add this fraction to the latest year with a negative Cumulative Total (year 1).
ayback calculations, read the "Payback" section in Chapter 10: Calculate ROI, in the HBR Guide to Building Your Bu
ates from the "Cost & Benefits" worksheet. This is because Year 1 on this worksheet does not have the same start da

s no matter how long the project takes to complete.

tart, and continues for one year (365 days). Each of the following columns should represent one year of benefit, start

rksheet.

Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

$ 55,000 $ 33,000 $ 22,000 $ 11,000
$ 20,000 $ 12,000 $ 8,000 $ 4,000

$ 75,000 $ 45,000 $ 30,000 $ 15,000 $ - $ - $ -

Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

$ 20,000 $ 20,000 $ 20,000 $ 20,000
$ 20,000 $ 20,000 $ 20,000 $ 20,000 $ - $ - $ -

Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

$ 1,050,000 $ 1,050,000 $ 1,050,000 $ 868,750
$ (80,000) $ (40,000)
$ 970,000 $ 1,010,000 $ 1,050,000 $ 868,750 $ - $ - $ -

$ 875,000 $ 945,000 $ 1,000,000 $ 833,750 $ - $ - $ -

$ 402,250 $ 1,347,250 $ 2,347,250 $ 3,181,000 $ 3,181,000 $ 3,181,000 $ 3,181,000

Payback = 1.54 years

itive. In this example this is from year 1 to year 2. The payback value is the latest year with a negative Cumulative To

hlighted in yellow), by the annual total of the following year (highlighted in pink). In this example, divide 472,750 by 8
umulative Total (year 1). Year 1 + .54 = a payback period of 1.54 years.
uide to Building Your Business
t have the same start date as the

ne year of benefit, starting on the

Estimate Rationale
Year 9 Total
$ 220,000 20% added to Century price for complexity
$ 80,000 Quote from RMD, Inc.

$ 80,000 Based on SSP project cost plus 20%

$ 350,000 Based on SSP project cost plus 20%
$ 175,000 Revise current Century process
$ 100,000 Based on SSP project cost plus 20%
$ 50,000 Per standard 122.45
$ 200,000 20 unit pilot run
$ 60,000 Estimate from JM in Mkt
$ 24,000 Train 50 reps, $14,000 dev

$ - $ 1,339,000

Year 9 Total
$ 100,000 Based upon current Century equipment
$ - $ 100,000

Year 9 Total
$ 4,800,000 Sales projection from Tom S
$ (180,000) Sales projection from Tom S
$ - $ 4,620,000

$ -
$ 3,181,000
negative Cumulative Total (year 1)

le, divide 472,750 by 875,000

Type 1 Payback: ABC MedTech Case

• NOTE: For an explanation of the difference between Type 0 and Type 1 Payback calculations, read
Case. Also, please note that only the "Amount" data (Column F) auto-populates from the "Cost & Ben
the first year on the "Cost & Benefits" worksheet.
• The Year 1 column represents one year (365 days) from the start of the project. Each of the followi
lasts less than one year, the benefits start in Year 1. If the project lasts longer than one year, some o
months of benefits occur in Year 1.
• Instructions for calculating the payback period are at the bottom of this worksheet.
• For more information in the HBR Guide to Building a Business Case, read the "Payback" section in

Project Investment
Capital Expenditures Amount Year 1 Year 2
Production Test Equipment (2 systems) $ 220,000 $ 24,750 $ 88,000
Sensor Test Equipment (2 systems) $ 80,000 $ 9,000 $ 32,000
Total Capital Costs $ 300,000
Project Expense (One-time Expense)
Prototype Development $ 80,000 $ 80,000
Product Design and Development $ 350,000 $ 350,000
Ops Processes Design & Development $ 175,000 $ 175,000
Unit & Integration Testing $ 100,000 $ 100,000
System Qualification Testing $ 50,000 $ 50,000
Pilot Run & Operator Training $ 200,000 $ 200,000
Market Launch $ 60,000 $ 60,000
Sales Training $ 24,000 $ 24,000
Total Project Expense $ 1,039,000
Total Project Investment $ 1,339,000 $ 1,072,750 $ 120,000

Operating Costs (OpEx) Amount Year 1 Year 2

Operating test equipment maintenance $20,000/yr $ 5,000 $ 20,000
Total Operating Costs $ 5,000 $ 20,000

Project Benefits (amount & timing) Amount Year 1 Year 2

Sales of Century 2000 (gross profit) $3,000/unit $ 90,000 $ 921,000
Cannibalized sales of old Century platform $800/unit $ (12,000) $ (64,000)
Total Benefits $ 78,000 $ 857,000

Annual Total $ (999,750) $ 717,000

Cumulative Total $ (999,750) $ (282,750)
To calculate:
1) Find where the Cumulative Total (Row 30) crosses from negative to positive. In this example this i
(year 2) plus a fraction of the following year.
2) To determine the fraction, divide the previous year's cumulative total (highlighted in yellow), by the
which equals .32. Then add this fraction to the latest year with a negative Cumulative Total (year 2).
e 1 Payback calculations, read the "Payback" section in Chapter 10: Calculate ROI, in the HBR Guide to Building Yo
opulates from the "Cost & Benefits" worksheet. This is because Year 1 on this worksheet does not have the same st

he project. Each of the following columns represents one year starting on the anniversary of the project start date. If
longer than one year, some of the project investment will be in Year 2. In this case the project was a nine-month pro

s worksheet.
read the "Payback" section in Chapter 10: Calculate ROI.

Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9

$ 49,500 $ 30,250 $ 19,250 $ 8,250
$ 18,000 $ 11,000 $ 7,000 $ 3,000

$ 67,500 $ 41,250 $ 26,250 $ 11,250 $ - $ - $ -

Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9

$ 20,000 $ 20,000 $ 20,000 $ 20,000 $ - $ - $ -
$ 20,000 $ 20,000 $ 20,000 $ 20,000 $ - $ - $ -

Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9

$ 1,050,000 $ 1,050,000 $ 1,050,000 $ 639,000 $ - $ - $ -
$ (80,000) $ (24,000) $ - $ - $ - $ - $ -
$ 970,000 $ 1,026,000 $ 1,050,000 $ 639,000 $ - $ - $ -

$ 882,500 $ 964,750 $ 1,003,750 $ 607,750 $ - $ - $ -

$ 599,750 $ 1,564,500 $ 2,568,250 $ 3,176,000 $ 3,176,000 $ 3,176,000 $ 3,176,000

Payback = 2.32 Years

positive. In this example this is from year 2 to year 3. The payback value is the latest year with a negative Cumulativ

(highlighted in yellow), by the annual total of the following year (highlighted in pink). In this example, divide 282,750
ve Cumulative Total (year 2). Year 2 + .32 = a payback period of 2.32 years.
 R Guide to Building Your Business
es not have the same start date as

he project start date. If the project

t was a nine-month project so three

Estimate Rationale
Year 10 Total
$ 220,000 20% added to Century price for complexity
$ 80,000 Quote from RMD, Inc.

$ 80,000 Based on SSP project cost plus 20%

$ 350,000 Based on SSP project cost plus 20%
$ 175,000 Revise current Century process
$ 100,000 Based on SSP project cost plus 20%
$ 50,000 Per standard 122.45
$ 200,000 20 unit pilot run
$ 60,000 Estimate from JM in Mkt
$ 24,000 Train 50 reps, $14,000 dev

$ - $ 1,339,000

Year 10 Total
$ - $ 105,000 Based upon current Century equipment
$ - $ 105,000

Year 10 Total
$ - $ 4,800,000 Sales projection from Tom S
$ - $ (180,000) Sales projection from Tom S
$ - $ 4,620,000

$ -
$ 3,176,000
h a negative Cumulative Total

xample, divide 282,750 by 882,500

Net Present Value (NPV): ABC MedTech Case
• Entries are auto-populating from the "Cost & Benefits" worksheet.
• The NPV will automatically calculate and display in cell H30 once the discount rate and number of y
• For more information in the HBR Guide to Building a Business Case, read the "Net PresentVvalue"
Project Investment
Capital Expenditures Amount 2012 2013
Production Test Equipment (2 systems) $ 220,000 $ - $ 99,000
Sensor Test Equipment (2 systems) $ 80,000 $ - $ 36,000
Total Capital Costs $ 300,000
Project Expense (One-time Expense)
Prototype Development $ 80,000 $ 80,000 $ -
Product Design and Development $ 350,000 $ 350,000 $ -
Ops Processes Design & Development $ 175,000 $ 175,000 $ -
Unit & Integration Testing $ 100,000 $ 100,000 $ -
System Qualification Testing $ 50,000 $ 50,000 $ -
Pilot Run & Operator Training $ 200,000 $ 200,000 $ -
Market Launch $ 60,000 $ 60,000 $ -
Sales Training $ 24,000 $ 24,000 $ -
Total Project Expense $ 1,039,000
Total Project Investment $ 1,339,000 $ 1,039,000 $ 135,000

Operating Costs (OpEx) Amount 2012 2013

Operating test equipment maintenance $20,000/yr $ - $ 20,000
Total Operating Costs $ - $ 20,000

Project Benefits (amount & timing) Amount 2012 2013

Sales of Century 2000 (gross profit) $3,000/unit $ - $ 750,000
Cannibalized sales of old Century platform $800/unit $ - $ (60,000)
Total Benefits $ - $ 690,000

Annual Total $ (1,039,000) $ 535,000

Discount Rate: 10.0% NPV: $ 2,100,607

# of years in NPV analysis:

select a value between 2 and 6
10
ount rate and number of years have been entered in cells E30 & E31.
the "Net PresentVvalue" section in Chapter 10: Calculate ROI.

2014 2015 2016 2017 2018 2019 2020

$ 55,000 $ 33,000 $ 22,000 $ 11,000 $ - $ - $ -
$ 20,000 $ 12,000 $ 8,000 $ 4,000 $ - $ - $ -

$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -

$ 75,000 $ 45,000 $ 30,000 $ 15,000 $ - $ - $ -

2014 2015 2016 2017 2018 2019 2020

$ 20,000 $ 20,000 $ 20,000 $ 20,000 $ - $ - $ -
$ 20,000 $ 20,000 $ 20,000 $ 20,000 $ - $ - $ -

2014 2015 2016 2017 2018 2019 2020

$ 1,050,000 $ 1,050,000 $ 1,050,000 $ 900,000 $ - $ - $ -
$ (80,000) $ (40,000) $ - $ - $ - $ - $ -
$ 970,000 $ 1,010,000 $ 1,050,000 $ 900,000 $ - $ - $ -

$ 875,000 $ 945,000 $ 1,000,000 $ 865,000 $ - $ - $ -

 Estimate Rationale
2021 Total
$ - $ 220,000 20% added to Century price for complexity
$ - $ 80,000 Quote from RMD, Inc.

$ - $ 80,000 Based on SSP project cost plus 20%

$ - $ 350,000 Based on SSP project cost plus 20%
$ - $ 175,000 Revise current Century process
$ - $ 100,000 Based on SSP project cost plus 20%
$ - $ 50,000 Per standard 122.45
$ - $ 200,000 20 unit pilot run
$ - $ 60,000 Estimate from JM in Mkt
$ - $ 24,000 Train 50 reps, $14,000 dev

$ - $ 1,339,000

2021 Total
$ - $ 100,000 Based upon current Century equipment
$ - $ 100,000

2021 Total
$ - $ 4,800,000 Sales projection from Tom S
$ - $ (180,000) Sales projection from Tom S
$ - $ 4,620,000

$ -
Internal Rate of Return (IRR): ABC MedTech Case
• Entries are auto-populating from the "Cost & Benefits" worksheet.
• The IRR will automatically calculate and display in cell G30 once the number of years has been ent
• For more information in the HBR Guide to Building a Business Case, read the "Internal Rate of Retu

Project Investment
Capital Expenditures Amount 2012 2013
Production Test Equipment (2 systems) $ 220,000 $ - $ 99,000
Sensor Test Equipment (2 systems) $ 80,000 $ - $ 36,000
Total Capital Costs $ 300,000
Project Expense (One-time Expense)
Prototype Development $ 80,000 $ 80,000 $ -
Product Design and Development $ 350,000 $ 350,000 $ -
Ops Processes Design & Development $ 175,000 $ 175,000 $ -
Unit & Integration Testing $ 100,000 $ 100,000 $ -
System Qualification Testing $ 50,000 $ 50,000 $ -
Pilot Run & Operator Training $ 200,000 $ 200,000 $ -
Market Launch $ 60,000 $ 60,000 $ -
Sales Training $ 24,000 $ 24,000 $ -
Total Project Expense $ 1,039,000
Total Project Investment $ 1,339,000 $ 1,039,000 $ 135,000

Operating Costs (OpEx) Amount 2012 2013

Operating test equipment maintenance $20,000/yr $ - $ 20,000
Total Operating Costs $ - $ 20,000

Project Benefits (amount & timing) Amount 2012 2013

Sales of Century 2000 (gross profit) $3,000/unit $ - $ 750,000
Cannibalized sales of old Century platform $800/unit $ - $ (60,000)
Total Benefits $ - $ 690,000

Annual Total $ (1,039,000) $ 535,000

IRR: 66.5%
# of years in IRR analysis:
select a value between 2 and 6
10
r of years has been entered in cell E31.
e "Internal Rate of Return" section in Chapter 10: Calculate ROI.

2014 2015 2016 2017 2018 2019 2020

$ 55,000 $ 33,000 $ 22,000 $ 11,000 $ - $ - $ -
$ 20,000 $ 12,000 $ 8,000 $ 4,000 $ - $ - $ -

$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -
$ - $ - $ - $ - $ - $ - $ -

$ 75,000 $ 45,000 $ 30,000 $ 15,000 $ - $ - $ -

2014 2015 2016 2017 2018 2019 2020

$ 20,000 $ 20,000 $ 20,000 $ 20,000 $ - $ - $ -
$ 20,000 $ 20,000 $ 20,000 $ 20,000 $ - $ - $ -

2014 2015 2016 2017 2018 2019 2020

$ 1,050,000 $ 1,050,000 $ 1,050,000 $ 900,000 $ - $ - $ -
$ (80,000) $ (40,000) $ - $ - $ - $ - $ -
$ 970,000 $ 1,010,000 $ 1,050,000 $ 900,000 $ - $ - $ -

$ 875,000 $ 945,000 $ 1,000,000 $ 865,000 $ - $ - $ -

 Estimate Rationale
2021 Total
$ - $ 220,000 20% added to Century price for complexity
$ - $ 80,000 Quote from RMD, Inc.

$ - $ 80,000 Based on SSP project cost plus 20%

$ - $ 350,000 Based on SSP project cost plus 20%
$ - $ 175,000 Revise current Century process
$ - $ 100,000 Based on SSP project cost plus 20%
$ - $ 50,000 Per standard 122.45
$ - $ 200,000 20 unit pilot run
$ - $ 60,000 Estimate from JM in Mkt
$ - $ 24,000 Train 50 reps, $14,000 dev

$ - $ 1,339,000

2021 Total
$ - $ 100,000 Based upon current Century equipment
$ - $ 100,000

2021 Total
$ - $ 4,800,000 Sales projection from Tom S
$ - $ (180,000) Sales projection from Tom S
$ - $ 4,620,000

$ -