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Illustrative return calculation
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Month (of Year 1)
Year
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in $123456789101112123456
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InvestReturn
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InvestmentProduct developmentProduct launch
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 Staffing expenses
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 Salaries - Product(12,500)(23,333)(23,333)(23,333)(23,333)(12,500)(12,500)(12,500)(12,500)000->(155,833)00000
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 Salaries - Design0(12,500)(23,333)(23,333)(12,500)0000000(71,667)00000
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 Salaries - Engineering0(10,000)(10,000)(10,000)(150,000)(150,000)(150,000)(150,000)(150,000)(150,000)(30,000)(7,500)(967,500)(36,000)(9,000)(9,000)(9,000)(9,000)
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 Burden (health ins, taxes, perks)30%(3,750)(13,750)(17,000)(17,000)(55,750)(48,750)(48,750)(48,750)(48,750)(45,000)(9,000)(2,250)(358,500)(10,800)(2,700)(2,700)(2,700)(2,700)
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 Management overhead20%(3,250)(11,917)(14,733)(14,733)(48,317)(42,250)(42,250)(42,250)(42,250)(39,000)(7,800)(1,950)(310,700)(9,360)(2,340)(2,340)(2,340)(2,340)
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 Direct non-staff expenses
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 Cloud compute (AWS etc)(3,000)(3,000)(3,000)(3,000)(3,000)(3,000)(3,000)(3,000)(3,000)(3,000)(24,000)(26,400)(80,400)(374,400)(393,120)(412,776)(433,415)(216,707)
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 Other
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Total expenses(22,500)(74,500)(91,400)(91,400)(292,900)(256,500)(256,500)(256,500)(256,500)(237,000)(70,800)(38,100)(1,944,600)(430,560)(407,160)(426,816)(447,455)(230,747)
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Financial impact
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Margin impact (revenue increase / cost decrease)
000000000020,00040,00060,0001,200,0001,500,0001,600,0001,800,000500,000
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Net financial impact(50,800)1,900(1,884,600)769,4401,092,8401,173,1841,352,545269,253
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IRR41.62%
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