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ROI

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					                       Traditional          Agile
      Year 1 ROI            0%               80%
      Year 2 ROI           72%              210%
      Year 3 ROI          130%              264%
Payback (months)            30                14
            NPV         $663,287         $2,271,181




                                    Cumulative Net Benefits
    $2,500,000

    $2,000,000

    $1,500,000

    $1,000,000

     $500,000
                                                                                        Agile
            $0
                                                                                        Traditional
                   1    2   3   4    5    6   7   8   9 10 11 12 13 14 15 16 17 18 19
    ($500,000)

   ($1,000,000)

   ($1,500,000)
Agile
Traditional
Team Size                                        10
Average Loaded annual salary                      0
Initial investment                       #########
Cost of capital                                15%
Interest rate                                   8%

                                                                              Year 1
                               Period:       0        1        2          3           4
Benefits
  Balance                                 ######### ######### ######### ######### #########
  Benefits realized                                    $7,980    $8,087    $8,195    $8,304
Annual net benefit flow                                $7,980   $16,066   $24,261   $32,565
Discounted benefit flow
  Total discounted benefit flow                   $0   $6,939   $12,148   $15,952   $18,619
  Total cumulative discounted benefit flow        $0   $6,939   $19,087   $35,039   $53,659
ROI measures
  Return on investment                                 1%        2%        3%        4%
  Net present value                        $314,993
ar 1                                                      Year 2
           5         6          7          8          9            10      11         12

       ######### ######### ######### ######### ######### ######### ######### #########
          $8,415    $8,528    $8,642    $8,758    $8,875    $8,994    $9,114    $9,236
         $40,981   $49,509   $58,151   $66,908   $75,783   $84,777   $93,891 $103,127

         $20,375   $21,404    $21,861    $21,872    $21,542    $20,956    $20,181    $19,275
         $74,033   $95,437   $117,298   $139,171   $160,713   $181,669   $201,850   $221,125

          6%        8%        10%        12%        13%            15%    17%        18%
                              Year 3
   13         14         15            16      17          18

######### ######### ######### ######### $1,500,357      $1,520,428
   $9,359    $9,485    $9,611    $9,740     $9,870         $10,002
 $112,486 $121,971 $131,582 $141,322      $151,192        $161,195

  $18,282    $17,238    $16,171    $15,102    $14,050     $13,025
 $239,407   $256,645   $272,816   $287,918   $301,968    $314,993

  20%        21%        23%        24%        25%          26%
                                                                                  Year 1
                                Period:       0          1          2          3
Benefits
  Benefits realized                                   $166,667 $166,667 $166,667
  Total benefits realized                               $0       $55,556    $166,667
Costs
  Upfront Costs                            $100,000         $0         $0         $0
  Ongoing labor costs                      $208,333 $208,333 $208,333 $208,333
  Other ongoing costs                          $600       $600       $600       $600
  Total costs                              $308,333 $208,933 $208,933 $208,933
Annual net benefit flow                   ($308,333) ($208,933) ($153,378) ($42,267)
Discounted benefit flow
  Discounted costs                         $308,333 $181,681 $157,984 $137,377
  Discounted benefits                            $0         $0    $42,008 $109,586
  Total discounted benefit flow           ($308,333) ($181,681) ($115,976) ($27,791)
  Total cumulative discounted benefit flow($308,333) ($490,014) ($605,990) ($633,781)
ROI measures
  Return on investment                                  0%         6%         19%
  Payback period (in months)                      14
  Net present value                       #########
Team Size                                      10
Average Loaded annual salary               125000
Maximum realized Benefit                  1000000
Cost of capital                              15%

                                                                                       Year 1
                               Period:      0            1            2            3            4
Benefits
  Benefits realized
  Total benefits realized
Costs
  Upfront Costs                           $100,000           $0           $0           $0           $0
  Ongoing labor costs                     $208,333     $208,333     $208,333     $208,333     $208,333
  Other ongoing costs                         $600         $600         $600         $600         $600
  Total costs                             $308,333     $208,933     $208,933     $208,933     $208,933
Annual net benefit flow                  ($308,333)   ($208,933)   ($208,933)   ($208,933)   ($208,933)
Discounted benefit flow
  Discounted costs                        $308,333     $181,681     $157,984     $137,377     $119,458
  Discounted benefits                           $0           $0           $0           $0           $0
  Total discounted benefit flow          ($308,333)   ($181,681)   ($157,984)   ($137,377)   ($119,458)
                                         ($308,333)
  Total cumulative discounted benefit flow            ($490,014)   ($647,998)   ($785,375)   ($904,833)
ROI measures
  Return on investment                                  0%           0%           0%            0%
  Payback period (in months)                     30
  Net present value                      $663,287
r1                                                               Year 2
         5            6            7           8            9              10            11            12

                                $166,667    $166,667     $166,667     $166,667        $166,667      $166,667
                                 $166,667    $333,333     $500,000     $666,667        $833,333     $1,000,000

             $0           $0          $0          $0           $0              $0           $0            $0
       $208,333     $208,333     $41,667     $41,667      $41,667         $41,667      $41,667       $41,667
           $600         $600        $120        $120         $120            $120         $120          $120
       $208,933     $208,933     $41,787     $41,787      $41,787         $41,787      $41,787       $41,787
      ($208,933)   ($208,933)    $124,880    $291,547     $458,213        $624,880     $791,547      $958,213

       $103,877    $90,328    $15,709         $13,660      $11,878      $10,329          $8,982        $7,810
             $0         $0    $62,656        $108,967     $142,131     $164,790        $179,119      $186,907
      ($103,877)  ($90,328)   $46,947         $95,307     $130,253     $154,461        $170,138      $179,097
     ########## ########## ##########       ($956,784)   ($826,531)   ($672,070)      ($501,933)    ($322,836)

        0%           0%                6%          15%          28%             42%           57%           72%
                                    Year 3
   13            14            15             16           17           18


$1,000,000    $1,000,000    $1,000,000   $1,000,000     $1,000,000   $1,000,000

      $0            $0            $0              $0          $0           $0
 $41,667       $41,667       $41,667         $41,667     $41,667      $41,667
    $120          $120          $120            $120        $120         $120
 $41,787       $41,787       $41,787         $41,787     $41,787      $41,787
 $958,213      $958,213      $958,213        $958,213    $958,213     $958,213

   $6,792       $5,906        $5,135       $4,466         $3,883       $3,377
 $162,528     $141,329      $122,894     $106,865        $92,926      $80,805
 $155,736     $135,423      $117,759     $102,399        $89,043      $77,429
($167,099)    ($31,676)      $86,083     $188,482       $277,525     $354,954

        86%           97%       107%            116%        123%         130%

				
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