a) worksheet for five years














b) worksheet for 6 years


c) worksheet for 3 years


As you can see above, if the useful life of the project is only three years, the overall net present value is lesser than the overall net present value for five years and has a negative value. However, if the useful life of the project is six years, the overall net present value is higher than the overall net present value for five years.
For my recommendations which I based from the overall net present value,

• If the useful life of the project will only be three years, to have a positive overall net present value,
• There should be no discount at all if there will be no changes to the amounts of benefits and costs; or
• If there will be no changes to the amount of costs and to the discount rate, there should be additional benefits which will make the amount of benefits higher than the amount of cost; or
• If there will be no changes to the amount of benefits and to the discount rate, some cost should be eliminated so that the amount of costs will be lesser than the amount of benefits.
• If the useful life will be five years, there is no need for changing the amount of benefits or costs and/or discount rate because the overall net present value is really high which is greater than the overall net present value for five years.