263367 - Project Proposal

Project no. 263367 NEBX Connecting cable for Indiv. valves Project category B
Top project

BU Pneumatic Controls Confidential

Product Center Product family Module X
Division Individual Valves Business plan PA-Version 6.0.5
Customer Customer project -
Project manager MLVR Degree of novelty Developed from system requirements
Product manager MTO Safety project
Resp4develop. Loc. of developm. Product Factsheet
Resp4product. Location of prod. 0620 Turkey Security project -

Project brief description/ Strategy

Brief description Strategy reference
The new product line NEBX connection cables will be the new product line of New Product line VUVX
connection cables for our new universal single valve series (inline, semi-inline and
subplate valves). In addition, the series will also offer connection cables for the
main single valve families.

Market environment

Unique selling points (key points) Primary market goals Target segments/lead customers
1. One universal connecting cable product line which match perfect to our new Improve overall profitability of connecting cable
inline valve portfolio Improve degree of equipment
2. Costoptimisation Increase market share of conecting cables

Market Launch (PLM-year) Substitution of Influence on other products

EUR 2025 Existing connecting cable families like NEBV
AMR 2025 KMEB, KMF, KMYZ, KME, KMC, KMV …
Asia 2025

Sales, Pricing & KPIs

Empty fields without title List price Market price Market price Specified PC Factor
in Europe average (RP) lowest (3rd year)
1. Connecting cable NEBX NEBX-C1SW4L-P-E-2.5-N-LE3-S9 13,05 EUR 6,53 EUR 6,53 EUR 2,31 EUR 5,6
2. Connecting cable NEBX NEBA-M8G3-U-2.5-N-LE3 6,70 EUR 3,35 EUR 3,35 EUR 1,72 EUR 3,9
3. Connecting cable NEBX NEBX-H1G2-KN-0.5-N-LE2 1,31 EUR 0,65 EUR 0,65 EUR 0,29 EUR 4,5

1st year 2nd year 3rd year 4th year 5th year Total Distribution
Core volume 334.712 1.004.136 3.012.408 3.347.120 3.681.832 11.380.208 EUR 25%
AMR 20%
related to Einzelventile Unit Stk. TPC GCN 40%
AS-GCN 15%
1st year 2nd year 3rd year 4th year 5th year Total
Net Sales 1.539.217 4.617.650 13.852.954 15.392.174 16.931.386 52.333.381 EUR
GCM (new prod) 944.085 2.832.255 8.496.765 9.440.847 10.384.934 32.098.886 EUR Ø GCM 61%

Indirect NetSales - - - - - - EUR

GCM (indirect) - - - - - - EUR Ø GCM 0%

Total NetSales 1.539.217 4.617.650 13.852.954 15.392.174 16.931.386 52.333.381 EUR

Total GCM 944.085 2.832.255 8.496.765 9.440.847 10.384.934 32.098.886 EUR Ø GCM 61%

Time to Profit (in years) 3,2 GCM avg. (full lifecycle) 59,7%
IRR 140,3% NPV (in mEUR) 22,3

Planning of Phase 1
Project budget for phase 0 and 1 Rough estimate Rough estimation: Rough estimation:
(incl. planned preminary inspections) Total budget budget TEC budget GPC

Resources(YXPLM) - h 4.400 h - h - h

Resources(YXPLM) - EUR 340.666 EUR - EUR - EUR

Overheads(YXPLM) - EUR - EUR - EUR - EUR
Tools - EUR 345.000 EUR - EUR - EUR
Operating/ test equip. - EUR 700.000 EUR - EUR - EUR
Others - EUR - EUR - EUR - EUR

Total - EUR 1.385.666 EUR - EUR - EUR

Optional ! Optional ! Optional !

LH_263367_-.xlsm 1/ 27
 Estimated schedule Comments (framework conditions and risks)
for Phase 1
Earliest start 2023 / W 26
Duration 24 W
Predicted end 2023 / W 50

Planned project-related preliminary studies

Prel. no. Title Preminary inspection - comment
1.
2.
3.

Approval

Date, name code Signature

Product management Responsible product manager *

Management BU / PFA / PM / PD

Further signer Further relevant signer

*Please note: Prior to the signature of the project proposal and completion of phase 0, project proposal and requirements specification must be presented and clarified in the PSC in charge.

LH_263367_-.xlsm 2/ 27
Planning Figures New Product
Projekt: 263367 - NEBX Connecting cable for Indiv. valves Currency EUR Unit Stk.
Please set for comments under "Options/View" "Indicators Desired
only".
2025 1
Insert Groups Insert Rows market launch
related to Einzelventile
 Legend ² Processing assistance

Summary 1st year 2nd year 3rd year 4th year 5th year
Key products sales volume 334.712 1.004.136 3.012.408 3.347.120 3.681.832 Stk.
Total NetSales 1.539.217 4.617.650 ####### ####### ####### EUR
#######
Total GCM 944.085 2.832.255 8.496.765 9.440.847 EUR
#####
startup curve
startup curve 0 20% 40% 60% 80% 100%
Optional startup curve 1 10% 30% 90% 100% 110% Key products sales
Total
by region
NetSales byNetSales-rel.
region total amounts

NetSales (5th
Sales share Sales share Discount Core A (5th year) GCM (5th year) 5th year 5th year 5th year
year)
- - - - - -
EUR 25% 50% 920.458 4.232.846 2.596.233 920.458 4.232.846 2.596.233
AMR 20% 50% 736.366 3.386.277 2.076.986 736.366 3.386.277 2.076.986
GCN 40% 50% 1.472.733 6.772.554 4.153.972 1.472.733 6.772.554 4.153.972
AS-GCN 15% 50% 552.275 2.539.708 1.557.740 552.275 2.539.708 1.557.740
100% 50%

Quantities 100% Quantities 100% Market price/ GCM/ Factor Market price/ GCM/
Key products
Factor sales
Total NetSales GCM
the 100% basis of the amount for the calculation of the sales accordingly to the defined startup curve the 100% basis of the
amount for the Max.
50%
calculation of the discount
sales accordingly to to determine
Reference module
relevant to total

relevant to total

Reference prod.

the defined startup the minimale

startup curve
startup delay
Key products

curve market price

Productlist
Assembly

NetSales

NetSales

5th year 5th year 5th year

Designation Type designation Type Items Distribution Nom./Targ-PC LP Calc.factor 2029 2029 2029
Group:
x x x 1 Connecting cable NEBX NEBX-A1W3L-P-E-2,5-LE Standardprod. 13.500 2,36 14,21 6,03 14.850 105.517 70.500
x x x 1 Connecting cable NEBX NEBX-A1W3-P-E-2,5-LE Standardprod. 1.100 2,82 10,61 3,76 1.210 6.420 3.002
x x x 1 Connecting cable NEBX NEBX-A1W3L-P-E-5-LE Standardprod. 13.500 3,23 16,98 5,26 14.850 126.099 78.128
x x x 1 Connecting cable NEBX NEBX-A1W3-P-E-5-LE Standardprod. 600 3,67 13,38 3,65 660 4.416 1.993
x x x 1 Connecting cable NEBX NEBX-A1W3L-P-E-10-LE Standardprod. 4.600 5,03 22,54 4,48 5.060 57.016 31.552
x x x 1 Connecting cable NEBX NEBX-A1W3-P-E-10-LE Standardprod. 2.000 5,54 18,94 3,42 2.200 20.834 8.646
x x x 1 Connecting cable NEBX NEBX-A1W3L X-Länge DC X-Längen-Produkt 10 2,36 14,21 6,03 11 78 52
x x x 1 Connecting cable NEBX NEBX-A1W3 X-Länge AC X-Längen-Produkt 10 2,82 10,61 3,76 11 58 27
- - - -
- - - - -
Group:
x x x 1 Connecting cable NEBX NEBX-E1W2L-P-E-2.5-LE Standardprod. 8.000 1,93 26,24 13,62 8.800 115.434 98.485
x x x 1 Connecting cable NEBX NEBX-E1W2L-P-E-5-LE Standardprod. 6.000 2,59 30,64 11,82 6.600 101.099 83.986
x x x 1 Connecting cable NEBX NEBX-E1W2L-P-E-10-LE Standardprod. 2.200 4,13 38,74 9,38 2.420 46.871 36.879
x x x 1 Connecting cable NEBX NEBX E1W2L X-Länge DC X-Längen-Produkt 10 1,93 26,24 13,62 11 144 123
- - - - -
- - - - -
Group:
x x x 1 1 Connecting cable NEBX NEBX-C1SW4L-P-E-2.5-N-LE3-S9 Standardprod. 250.000 2,31 13,05 5,64 275.000 1.794.375 1.158.300
x x x 1 Connecting cable NEBX NEBX-C1SW4L-P-E-5-N-LE3-S9 Standardprod. 185.000 5,03 20,25 4,03 203.500 2.060.438 1.036.629
x x x 1 Connecting cable NEBX NEBX-C1SW4L-P-E-10-N-LE3-S9 Standardprod. 95.000 10,47 25,91 2,48 104.500 1.353.850 260.048
x x x 1 Connecting cable NEBX NEBX-C1SW4L-P-E-XLänge-N-LE3-S9 X-Längen-Produkt 10 2,31 13,05 5,64 11 72 46
x x x 1 Connecting cable NEBX NEBX-C1SW4-E-2.5-N-LE3-S9 Standardprod. 500 3,37 14,40 4,28 550 3.960 2.109
x x x 1 Connecting cable NEBX NEBX-C1SW4-E-5-N-LE3-S9 Standardprod. 500 4,94 19,35 3,92 550 5.321 2.604
x x x 1 Connecting cable NEBX NEBX-C1SW4-E-10-N-LE3-S9 Standardprod. 700 8,09 21,94 2,71 770 8.448 2.218
x x x 1 Connecting cable NEBX NEBX-C1SW4-E-XLänge-N-LE3-S9 X-Längen-Produkt 10 3,37 14,40 4,28 11 79 42
- - - - -
- - - - -
Group:
x x x 1 Connecting cable NEBX NEBX-B2W3L-P-E-2.5-LE Standardprod. 46.000 2,51 14,21 5,66 50.600 359.538 232.482
x x x 1 Connecting cable NEBX NEBX-B2W3-P-E-2.5-LE Standardprod. 2.000 2,50 10,61 4,25 2.200 11.672 6.183
x x x 1 Connecting cable NEBX NEBX-B2W3L-P-E-5-LE Standardprod. 26.000 3,39 16,98 5,01 28.600 242.857 145.817
x x x 1 Connecting cable NEBX NEBX-B2W3-P-E-5-LE Standardprod. 2.600 3,34 13,38 4,00 2.860 19.138 9.581
x x x 1 Connecting cable NEBX NEBX-B2W3L-P-E-10-LE Standardprod. 11.000 5,23 22,54 4,31 12.100 136.343 73.090
x x x 1 Connecting cable NEBX NEBX-B2W3-P-E-10-LE Standardprod. 2.000 5,18 18,94 3,66 2.200 20.834 9.438
x x x 1 Connecting cable NEBX NEBX-B2W3L X-Länge DC X-Längen-Produkt 10 2,51 14,21 5,66 11 78 51
x x x 1 Connecting cable NEBX NEBX-B2W3 X-Länge AC X-Längen-Produkt 10 2,50 10,61 4,25 11 58 31
- - - - -
- - - - -
Group:
x x x 1 Connecting cable NEBX NEBX-B1W3L-P-E-2,5-LE Standardprod. 2.200 2,74 14,21 5,18 2.420 17.195 10.553
 x x x 1 Connecting cable NEBX NEBX-B1W3-P-E-2,5-LE Standardprod. 50 3,53 10,61 3,01 55 292 98
x x x 1 Connecting cable NEBX NEBX-B1W3L-P-E-5-LE Standardprod. 2.700 3,59 16,98 4,73 2.970 25.220 14.554
x x x 1 Connecting cable NEBX NEBX-B1W3-P-E-5-LE Standardprod. 50 4,37 13,38 3,06 55 368 127
x x x 1 Connecting cable NEBX NEBX-B1W3L-P-E-10-LE Standardprod. 1.500 5,32 22,54 4,24 1.650 18.592 9.814
x x x 1 Connecting cable NEBX NEBX-B1W3-P-E-10-LE Standardprod. 50 6,10 18,94 3,10 55 521 185
x x x 1 Connecting cable NEBX NEBX-B1W3L X-Länge DC Standardprod. 10 2,74 14,21 5,18 11 78 48
x x x 1 Connecting cable NEBX NEBX B1W3 X-Länge AC Standardprod. 10 3,53 10,61 3,01 11 58 20
- - - - -
- - - - -
Group:
x x x 1 Connecting cable NEBX NEBX-Z4WA2L-P-E-0.5-N-LE2-S1 Standardprod. 6.800 1,17 18,55 15,89 7.480 69.373 60.644
x x x 1 Connecting cable NEBX NEBX-Z4WA2L-P-E-10-N-LE2-S1 Standardprod. 18.000 2,45 22,03 9,00 19.800 218.117 169.646
x x x 1 Connecting cable NEBX NEBX-Z4WA2L-P-E-2.5-N-LE2-S1 Standardprod. 56.000 1,41 14,36 10,19 61.600 442.134 355.370
x x x 1 Connecting cable NEBX NEBX-Z4WA2L-P-E-5-N-LE2-S1 Standardprod. 29.000 1,76 16,79 9,52 31.900 267.864 211.593
x x x 1 Connecting cable NEBX NEBX-Z4WA2L-P-E-0.5-N-M8G3-S1 Standardprod. 12.000 1,97 30,90 15,68 13.200 203.920 177.903
x x x 1 Connecting cable NEBX NEBX-Z4WA2L-P-E-0.5-N-M8G3-S1 Standardprod. 7.500 2,21 34,08 15,42 8.250 140.592 122.361
x x x 1 Connecting cable NEBX NEBX-Z4WA2L-P X-Länge P X-Längen-Produkt 10 1,17 18,55 15,89 11 102 89
x x x 1 Connecting cable NEBX NEBX-Z4WA2L-R-E-0.5-N-LE2-S1 Standardprod. 32.000 2,50 21,92 8,76 35.200 385.704 297.634
x x x 1 Connecting cable NEBX NEBX-Z4WA2L-R-E-10-N-LE2-S1 Standardprod. 205.000 1,51 14,36 9,50 225.500 1.618.526 1.277.897
x x x 1 Connecting cable NEBX NEBX-Z4WA2L-R-E-2.5-N-LE2-S1 Standardprod. 80.000 1,83 16,79 9,15 88.000 738.936 577.490
x x x 1 Connecting cable NEBX NEBX-Z4WA2L-R-E-5-N-LE2-S1 Standardprod. 15.000 1,99 32,01 16,11 16.500 264.107 231.326
x x x 1 Connecting cable NEBX NEBX-Z4WA2L-R-E-0.5-N-M8G3-S1 Standardprod. 2.900 2,15 35,05 16,29 3.190 55.898 49.037
x x x 1 Connecting cable NEBX NEBX-Z4WA2L-R-E-0.5-N-M8G3-S1 Standardprod. 200 2,15 35,05 16,29 220 3.855 3.382
x x x 1 Connecting cable NEBX NEBX-Z4WA2L-R X-Länge P X-Längen-Produkt 10 2,50 21,92 8,76 11 121 93
- - - - -
- - - - -
Group:
x x x 3 1 Connecting cable NEBX NEBX-H1G2-KN-0.5-N-LE2 Standardprod. 1.000.000 0,29 1,31 4,46 1.100.000 717.750 396.000
x x x 1 Connecting cable NEBX NEBX-H1G2-KN-1-N-LE2 Standardprod. 185.000 0,40 1,96 4,89 203.500 199.634 117.949
x x x 1 Connecting cable NEBX NEBX-H1G2-KN-2.5-N-LE2 Standardprod. 212.000 0,59 3,93 6,72 233.200 458.588 322.166
x x x 1 Connecting cable NEBX NEBX-H1G2-KN-5-N-LE2 Standardprod. 33.000 0,87 7,20 8,23 36.300 130.680 98.925
x x x 1 Connecting cable NEBX NEBX-H1G2-P-0.5-N-LE2 Standardprod. 30.000 0,63 5,89 9,41 33.000 97.119 76.478
x x x 1 Connecting cable NEBX NEBX-H1G2-P-1-N-LE2 Standardprod. 43.000 0,75 6,77 8,98 47.300 160.063 124.411
x x x 1 Connecting cable NEBX NEBX-H1G2-P-2.5-N-LE2 Standardprod. 95.000 1,08 9,39 8,69 104.500 490.471 377.611
x x x 1 Connecting cable NEBX NEBX-H1G2-P-5-N-LE2 Standardprod. 26.000 1,59 13,76 8,63 28.600 196.782 151.194
x x x 1 Connecting cable NEBX NEBX-HSG2-KN-0.5-N-LE2 Standardprod. 700 0,33 1,41 4,24 770 544 288
x x x 1 Connecting cable NEBX NEBX-HSG2-KN-1-N-LE2 Standardprod. 4.300 0,44 2,07 4,69 4.730 4.896 2.810
x x x 1 Connecting cable NEBX NEBX-HSG2-KN-2.5-N-LE2 Standardprod. 1.500 0,63 4,04 6,41 1.650 3.334 2.294
x x x 1 Connecting cable NEBX NEBX-HSG2-KN-5-N-LE2 Standardprod. 100 0,91 7,31 8,03 110 402 302
x x x 1 Connecting cable NEBX NEBX-HSG2-P-0.5-N-LE2 Standardprod. 1.100 0,65 6,11 9,46 1.210 3.697 2.916
x x x 1 Connecting cable NEBX NEBX-HSG2-P-1-N-LE2 Standardprod. 350 0,77 6,98 9,01 385 1.343 1.045
x x x 1 Connecting cable NEBX NEBX-HSG2-P-2.5-N-LE2 Standardprod. 1.000 1,11 9,60 8,67 1.100 5.282 4.064
x x x 1 Connecting cable NEBX NEBX-HSG2-P-5-N-LE2 Standardprod. 150 1,62 13,97 8,60 165 1.152 884
- - - - -
- - - - -
Group:
x x x 2 1 Connecting cable NEBX NEBA-M8G3-U-2.5-N-LE3 Standardprod. 40.000 1,72 6,70 3,90 44.000 147.400 71.764
x x x 1 Connecting cable NEBX NEBA-M8G3-U-5-N-LE3 Standardprod. 36.000 2,27 8,95 3,95 39.600 177.210 87.397
x x x 1 Connecting cable NEBX NEBA-M8G3-U-10-N-LE3 Standardprod. 19.000 3,35 13,45 4,02 20.900 140.553 70.579
x x x 1 Connecting cable NEBX NEBA X Länge gerade 3 polig X-Längen-Produkt 10 1,72 6,70 3,90 11 37 18
x x x 1 Connecting cable NEBX NEBA-M8W3-U-2.5-N-LE3 Standardprod. 40.000 1,72 7,20 4,19 44.000 158.400 82.764
x x x 1 Connecting cable NEBX NEBA-M8W3-U-5-N-LE3 Standardprod. 36.000 2,25 9,45 4,20 39.600 187.110 98.010
x x x 1 Connecting cable NEBX NEBA-M8W3-U-10-N-LE3 Standardprod. 19.000 3,35 13,95 4,17 20.900 145.778 75.804
x x x 1 Connecting cable NEBX NEBA X Länge gewinkelt 3 polig X-Längen-Produkt 10 1,72 7,20 4,19 11 40 21
x x x 1 Connecting cable NEBX NEBA-M8G4-U-2.5-N-LE4 Standardprod. 40.000 1,94 8,55 4,42 44.000 188.100 102.960
x x x 1 Connecting cable NEBX NEBA-M8G4-U-5-N-LE4 Standardprod. 36.000 2,57 11,15 4,35 39.600 220.770 119.196
x x x 1 Connecting cable NEBX NEBA-M8G4-U-10-N-LE4 Standardprod. 19.000 3,84 16,40 4,27 20.900 171.380 91.061
x x x 1 Connecting cable NEBX NEBA X Länge gerade 4 polig X-Längen-Produkt 10 1,94 8,55 4,42 11 47 26
x x x 1 Connecting cable NEBX NEBA-M8W4-U-2.5-N-LE4 Standardprod. 40.000 1,94 8,25 4,24 44.000 181.500 95.964
x x x 1 Connecting cable NEBX NEBA-M8W4-U-5-N-LE4 Standardprod. 36.000 2,57 10,85 4,23 39.600 214.830 113.256
x x x 1 Connecting cable NEBX NEBA-M8W4-U-10-N-LE4 Standardprod. 19.000 3,85 16,10 4,18 20.900 168.245 87.738
x x x 1 Connecting cable NEBX NEBA X Länge gewinkelt 4 polig X-Längen-Produkt 10 1,94 8,25 4,24 11 45 24
x x x 1 Connecting cable NEBX NEBA-M12G5-U-2.5-N-LE4 Standardprod. 40.000 2,19 9,65 4,41 44.000 212.300 116.072
x x x 1 Connecting cable NEBX NEBA-M12G5-U-5-N-LE4 Standardprod. 36.000 2,72 12,35 4,54 39.600 244.530 136.897
x x x 1 Connecting cable NEBX NEBA-M12G5-U-10-N-LE4 Standardprod. 19.000 3,81 17,50 4,60 20.900 182.875 103.309
x x x 1 Connecting cable NEBX NEBA X Länge gerade 5 polig X-Längen-Produkt 10 2,19 9,65 4,41 11 53 29
x x x 1 Connecting cable NEBX NEBA-M12W5-U-2.5-N-LE4 Standardprod. 40.000 2,39 9,80 4,09 44.000 215.600 110.264
x x x 1 Connecting cable NEBX NEBA-M12W5-U-5-N-LE4 Standardprod. 36.000 3,02 12,40 4,10 39.600 245.520 125.770
x x x 1 Connecting cable NEBX NEBA-M12W5-U-10-N-LE4 Standardprod. 19.000 4,30 17,67 4,11 20.900 184.652 94.740
x x x 1 Connecting cable NEBX NEBA X Länge gewinkelt 5 polig X-Längen-Produkt 10 2,39 9,80 4,09 11 54 28
- - - - -
- - - - -
Total 3.681.832 16.931.386 10.384.934
Totals accumulated 11.380.208 52.333.381 32.098.886
Totals rounded 3.681.800 16.931.400 10.384.900
accumulated totals rounded 11.380.200 52.333.400 32.098.900
Planning Figures Additional Sales
Projekt: 263367 - NEBX Connecting cable for Indiv. valves Currency EUR Unit Stk.
Please set for comments under basic year
"Options/View" "Indicators only".
2025 1
AUD

 Legend ² Processing assistance

Summary 1st year 2nd year 3rd year 4th year 5th year
Additional sales volume - - - - - Stk.
Additional NetSales - - - - - EUR
Additonal GCM - - - - - EUR
Additional startup curve
Additional startup curve 0 20% 40% 60% 80% 100%
Optional startup curve 1 for additional NetSales 10% 30% 90% 100% 110% Additional sales key
Additional
products
NetSales
by regions
Additional
by regions
GCM by regions

NetSales (5th
Regions Sales share Discount Core A (5th year) GCM (5th year) 5th year 5th year 5th year
year)
EUR 30% 99% - - - - - -
AMR 20% 99% - - - - - -
GCN 40% 99% - - - - - -
AS-GCN 10% 99% - - - - - -
100% 99%

Planning list Quantities 100% Pricing Market price/ GCM/

Additional
Factor
sales key
Total
products
NetSales Additional GCM
the 100% basis of the
amount for the
calculation of the sales
Reference module

accordingly to the
relevant to total

defined startup curve

startup curve
startup delay
Key products
Assembly

NetSales

5th year 5th year 5th year

Designation Type designation Type Quantity Distribution Nom./Targ-PC LP Calc.factor 2029 2029 2029
Group:
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
Group:
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
 - - - - -
- - - - -
- - - - -
- - - - -
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- - - - -
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Group:
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
Total - - -
Totals accumulated - - -
Totals rounded - - -
accumulated totals rounded - - -
Planning Figures Substituted Products
Projekt: 263367 - NEBX Connecting cable for Indiv. valves Currency EUR Unit Stk.
Please set for comments under basic year
"Options/View" "Indicators only".
2025 1
AUD

 Legend ² Processing assistance

Summary 1st year 2nd year 3rd year 4th year 5th year
Sales volume loss - - - - - Stk.
NetSales loss - - - - - EUR
GCM loss - - - - - EUR
Loss curve
Loss curve 0 20% 40% 60% 80% 100%
Optional loss curve 1 10% 30% 90% 100% 110% Sales volume lossNetSales
by regions
loss by regions
GCM loss by regions

NetSales (5th
Regions Sales share Discount Core A (5th year) GCM (5th year) 5th year 5th year 5th year
year)
EUR 30% 1% - - - - - -
AMR 20% 1% - - - - - -
GCN 40% 1% - - - - - -
AS-GCN 10% 1% - - - - - -
100% 1%

Planning list Quantities 100% Pricing Market price/ GCM

Sales/Factor
loss NetSales loss GCM loss
the 100% basis of the
amount for the
Reference module
relevant to total

calculation of the sales

startup curve
startup delay
Key products

accordingly to the
defined startup curve
Assembly

NetSales

5th year 5th year 5th year

Designation Type designation Type Quantity Distribution Nom./Targ-PC LP Calc.factor 2029 2029 2029
Group:
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
Group:
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
 - - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
Group:
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
- - - - -
Total - - -
Totals accumulated - - -
Totals rounded - - -
accumulated totals rounded - - -
Cost invest planning

Projekt: 263367 - NEBX Connecting cable for Indiv. valves

 Legend

Project application phase 0 Budget phase 0 and 1 Project application phase 0 Schedule plan for phase 1

Expenses Rough estimation Rough estimation: Rough estimation:

for phase 0 and 1 Total project budget TEC budget GPC Estimated schedule

Ressourcen h 4.400 - Year CW

Ressourcen EUR EUR 340.666 -
Overheads EUR - Earliest start 2023 26
Tools EUR 345.000 - Duration 24
Operating/ test equipment EUR 700.000 - Predicted end 2023 50
Others EUR -
Total EUR - 1.385.666 - - -
Total without tool costs EUR - 340.666 - - -
Project approval phase 1 Budget total project Project approval phase 1 Schedule plan total project

Basic schedule Deadline Conclusion (ph 5)

plan for project
structure
Project Year CW Year CW
263367 NEBX Connecting cable for Indiv. valves 2024 52
[A] Actual expenses [B] Planned HQ-expenses total [C] Planned expenses [D] Planned expenses GPC Total expenses Total of
for phase 0 and 1 expenses for Phase [A]+[B] TEC [A]+[B]+[C]+[D]
2 to 4 Release (ph 4) Buffer
Year CW Weeks New Product Release
Ressourcen h - - - Subproject 263367 NEBX Connecting cable for Indiv. valves 2024 52 0 2024 52

Resources EUR 340.666 340.666 340.666 - Subproject 0 0 0 0 0

Overheads EUR - - - Subproject 0 0 0 0 0
Tools EUR 235.000 235.000 235.000 - Subproject 0 0 0 0 0
Operating/ test equipment EUR - - - Subproject 0 0 0 0 0
Others EUR - - - Subproject 0 0 0 0 0
Total EUR - 575.666 575.666 - - 575.666 - Subproject 0 0 0 0 0
Total without tool costs EUR - 340.666 340.666 - - 340.666 0

Direct NetSales - Cost effectiveness assessment (payback), accumulated

1st year 2nd year 3rd year 4th year 5th year
Total NetSales EUR 1.539.217 6.156.867 20.009.821 35.401.995 52.333.381
Total GCM EUR 944.085 3.776.340 12.273.105 21.713.952 32.098.886
accumulated values

Pay-Back specification in 36 .month Total costs for payback 575.666

Pay-Back (direct) in 8 .month Annual depreciation 23.500 %

Total NetSales (direct and indirect NetSales), accumulated

1st year 2nd year 3rd year 4th year 5th year
Total NetSales EUR 1.539.217 6.156.867 20.009.821 35.401.995 52.333.381
Total GCM EUR 944.085 3.776.340 12.273.105 21.713.952 32.098.886
accumulated values

Payback
with total NetSales in 8 .month
Indirect NetSales, accumulated
I additional NetSales
1st year 2nd year 3rd year 4th year 5th year
Additional NetSales EUR - - - - -
Additonal GCM EUR - - - - -
accumulated values

II NetSales loss
1st year 2nd year 3rd year 4th year 5th year
NetSales loss EUR - - - - -
GCM loss EUR - - - - -
accumulated values
Profitability Calculation

Project Name NEBX Connecting cable for Indiv. valves End of conception (E.o. Ph. 2): 14.12.2023 Imputed Project Start 2024/01 Hurdle rates for financial KPIs:
SAP Main Project No. 263367 Sales Start (E.o. Phase 4): 19.06.2025 Imputed Start of Sales 2025/07 Time to Profit < 6 years
Project Manager: MLVR Internal Rate of Return > 25,3%
Product Manager: MTO

1) KPIs & Overview (this area can be copied into PowerPoint, please insert as graph)

IRR 140,3% Profitability szenario IRR NPV (Mio.€) IRR Sensitivity -20% -10% 0% 10% 20%
NPV (in mEUR) 22,3 Volume -12.5%, MPrice -1.25%, PrC +15% 102,9% 14,5 Volume 120,4% 130,5% 140,3% 149,9% 159,4%
Time to Profit (in years) 3,2 Volume -25%, MPrice -2.5%, PrC +30% 70,0% 8,2 Market Price 87,2% 114,5% 140,3% 165,5% 190,4%
GCM avg. (full lifecycle) 59,7% Volume -50%, MPrice -5%, PrC +60% 5,5% -0,5 Product Cost 173,5% 156,9% 140,3% 123,8% 107,2%
Volume Deviation Limit -90% Vol Time to Market + 1/2 years 107,2% 19,9
Market Price Deviation Limit -38% MPr Time to Market + 1 years 93,0% 17,8
Product Costs Deviation Limit +65% PrC

All figures related to new products only 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Total

Quantity in pcs. - 167.356 669.424 2.008.272 3.179.764 3.514.476 3.849.187 4.183.898 4.518.609 4.853.320 5.188.031 5.522.742 37.655.081
Quantity growth - 300% 200% 58% 11% 10% 9% 8% 7% 7% 6%
Net Sales in kEUR - 769,6 3.078,4 9.235,3 14.622,6 16.161,8 17.701,0 19.240,2 20.779,4 22.318,6 23.857,8 25.397,1 173.161,8
Sales growth - 300% 200% 58% 11% 10% 9% 8% 7% 7% 6%
Market price (weighted) in EUR/ pc. - 4,60 4,60 4,60 4,60 4,60 4,60 4,60 4,60 4,60 4,60 4,60 4,60
Product costs (weighted) in EUR/ pc. - 2,45 2,25 2,05 1,91 1,83 1,83 1,83 1,83 1,83 1,83 1,83 1,86

GCM abs. in kEUR - 359,9 1.573,4 5.121,9 8.548,5 9.744,4 10.672,4 11.600,4 12.528,5 13.456,5 14.384,5 15.312,6 103.302,9
GCM rel. in % - 46,8% 51,1% 55,5% 58,5% 60,3% 60,3% 60,3% 60,3% 60,3% 60,3% 60,3% 59,7%

Invest in kEUR - -1.045,0 - - - - - - - - - - -1.045,0

Cash flow, net in kEUR -119,2 -1.042,9 774,1 2.469,4 4.274,5 5.007,0 5.402,7 5.867,5 6.332,2 6.796,9 7.261,7 7.726,4
Cash Flow, net cum., disc. in kEUR -119,2 -1.052,8 -432,4 1.339,4 4.085,2 6.964,7 9.746,3 12.450,8 15.063,7 17.574,6 19.976,2 22.263,9

Change scale of Quantity in overview: in pcs. Change scale of Net Sales and GCM in overview: in kEUR
2) Data Input Plan
Y1 = 2025/07
12 monthly view on sales Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Y9 Y 10 Y 11 Y 12
- 2026/06
New Products Vol(Yn)/Vol(Y5) % 9% 27% 82% 91% 100% 109% 118% 127% 136% 145% 155% 164%
Volume of new products in pieces 334.712 1.004.136 3.012.408 3.347.120 3.681.832 4.016.543 4.351.254 4.685.965 5.020.676 5.355.387 5.690.098 6.024.809
Net Sales of new products in EUR 1.539.217 4.617.650 13.852.954 15.392.174 16.931.386 18.470.598 20.009.810 21.549.022 23.088.234 24.627.446 26.166.658 27.705.870
GCM (Group Contribution Margin) in EUR 944.085 2.832.255 8.496.765 9.440.847 10.384.934 11.329.016 12.273.098 13.217.180 14.161.262 15.105.343 16.049.425 16.993.507
Freight & packaging 1,7% of NetS in EUR -16.049 -48.148 -144.445 -160.494 -176.544 -192.593 -208.643 -224.692 -240.741 -256.791 -272.840 -288.890
COGS (Costs of Goods Sold) in EUR -819.478 -2.190.622 -6.036.253 -6.111.821 -6.722.996 -7.334.175 -7.945.355 -8.556.534 -9.167.714 -9.778.893 -10.390.073 -11.001.252
Production Starting Costs Standard 35% 20% 10% 0% 0%
Standard 35% 20% 10%
Short Ramp-up 20% 10% 0%
Late Autom. 200% 100% 10%
Individual

Growth new product after year 5: Degressive

Constant 16.931.386 16.931.386 16.931.386 16.931.386 16.931.386 16.931.386 16.931.386
Linear 18.470.598 20.009.810 21.549.022 23.088.234 24.627.446 26.166.658 27.705.870
Degressive 18.470.598 20.009.810 21.549.022 23.088.234 24.627.446 26.166.658 27.705.870
Individual
Substituted Products
Volume of substituted products in pieces - - - - - - - - - - - -
Net Sales of substituted products in EUR - - - - - - - - - - - -
GCM (Group Contribution Margin) in EUR - - - - - - - - - - - -
COGS (Costs of Goods Sold) in EUR - - - - - - - - - - - -

R&D Efforts 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Total

R&D Germany (HQ) in hours 800 h 1.000 h 1.800 h

R&D Bulgaria (Sofia) in hours 800 h 1.100 h 1.900 h
R&D Hungary (Budapest) in hours -
Total project costs (basis: hours) in EUR 119.200 160.600 - - - - - - - - - - 279.800

Other project costs in EUR -

Other project earnings in EUR -

Initial or Future
Invest (Machinery) - 700.000 - - - - - - - - - - 700.000
Invest
Cabel Confection L1 & L2 Initial invest 220.000 220.000
Crimping L1 & L2 Initial invest 60.000 60.000
Assembly L1 & L2 Initial invest 20.000 20.000
Overmolding L1 & L2 Initial invest 300.000 300.000
Final Product Test L1 & L2 Initial invest 90.000 90.000
Packaging L1 & L2 Initial invest 10.000 10.000
Invest 7 -
Invest 8 -
Invest 9 -
Invest 10 -
depriciation (12 years) in EUR - 58.333 58.333 58.333 58.333 58.333 58.333 58.333 58.333 58.333 58.333 583.333

Initial or Future
Invest (Tooling, Devices) - 345.000 - - - - - - - - - - 345.000
Invest
Kontaktträger (From C, C1, B, B2, A) Initial invest 150.000 150.000
Umspritzung (From C, B, A) Initial invest 150.000 150.000
Lichtleiter (From C, B, A) Initial invest 45.000 45.000
Tool: Invest 4 -
Tool: Invest 5 -
Tool: Invest 6 -
Tool: Invest 7 -
Tool: Invest 8 -
Tool: Invest 9 -
Tool: Invest 10 -
depriciation (5 years) in EUR - 34.500 69.000 69.000 69.000 69.000 - - - - - - 310.500

3) Cash Flow Calculation

2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Total
Volume net in pcs.
Volume of new product - 167.356 669.424 2.008.272 3.179.764 3.514.476 3.849.187 4.183.898 4.518.609 4.853.320 5.188.031 5.522.742 37.655.081
Volume of substituted products - - - - - - - - - - - - -
Net Sales net in kEUR - 770 3.078 9.235 14.623 16.162 17.701 19.240 20.779 22.319 23.858 25.397 173.162
Net Sales of new product - 770 3.078 9.235 14.623 16.162 17.701 19.240 20.779 22.319 23.858 25.397 173.162
Net Sales of substituted products - - - - - - - - - - - - -
GCM net in kEUR - 360 1.573 5.122 8.549 9.744 10.672 11.600 12.528 13.457 14.385 15.313 103.303
GCM of new product - 472 1.888 5.665 8.969 9.913 10.857 11.801 12.745 13.689 14.633 15.577 106.209
GCM of substituted products - - - - - - - - - - - - -
COGS net in kEUR - -410 -1.505 -4.113 -6.074 -6.417 -7.029 -7.640 -8.251 -8.862 -9.473 -10.084 -69.859
COGS of new product - -410 -1.505 -4.113 -6.074 -6.417 -7.029 -7.640 -8.251 -8.862 -9.473 -10.084 -69.859
COGS of substituted products - - - - - - - - - - - - -
R&D Total, new product, direct BU costs in kEUR -119 -161 - - - - - - - - - - -280
Invest Total in kEUR - -1.045 - - - - - - - - - - -1.045
Initial Investment Total in kEUR - -1.045 - - - - - - - - - - -1.045
Future Investment Total in kEUR - - - - - - - - - - - - -
Depreciation Correction in kEUR - 35 127 127 127 127 58 58 58 58 58 58 -894
S, G&A cost, net in kEUR - -232 -927 -2.780 -4.401 -4.865 -5.328 -5.791 -6.255 -6.718 -7.181 -7.645 -52.122
S, G&A costs, new product - -232 -927 -2.780 -4.401 -4.865 -5.328 -5.791 -6.255 -6.718 -7.181 -7.645 -52.122
S, G&A costs, substituted products - - - - - - - - - - - - -
Cash Flow, net -119 -1.043 774 2.469 4.274 5.007 5.403 5.867 6.332 6.797 7.262 7.726 50.750
Cash Flow, net, discounted -119 -934 620 1.772 2.746 2.879 2.782 2.704 2.613 2.511 2.402 2.288 22.264
Cash Flow, net cum., discounted in kEUR -119 -1.053 -432 1.339 4.085 6.965 9.746 12.451 15.064 17.575 19.976 22.264

Time to Profit, net (in years) 3,2 - - 3,16 - - - - - - - - -

4) WACC & Cost Rates

WACC in % 11,7% 0 1 2 3 4 5 6 7 8 9 10 11
Discounting 100,0% 89,5% 80,1% 71,8% 64,2% 57,5% 51,5% 46,1% 41,3% 36,9% 33,1% 29,6%

Start of project 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
SG&A cost share in % of total revenue relevant year 31,0% 30,1% 30,1% 30,1% 30,1% 30,1% 30,1% 30,1% 30,1% 30,1% 30,1% 30,1%
KST Land Land Name TEC Team Team, lang 2016 2017

1 BG Bulgaria Sofia R&D BG R&D Bulgaria (Sofia) 38 38

2 BR Brasil Sao Paulo R&D BR R&D Brasil (Sao Paulo) 34 34
3 CH Switzerland Pieterlen R&D CH R&D Switzerland (Pieterlen) 160 160
5 CN China Shanghai R&D CN R&D China (Shanghai) 46 46
6 CZ Tschek Republik Česká Lípa R&D CZ R&D Tschek Republik (Česká Lípa) 46 46
7 DE Germany HQ R&D HQ R&D Germany (HQ) 95 95
9 HU Hungary Budapest R&D HU R&D Hungary (Budapest) 36 36
10 KR Korea Seoul R&D KR R&D Korea (Seoul) 60 60
11 IN India Bangalore R&D IN R&D India (Bangalore) 12 12
14 US United States Boston R&D US R&D United States (Boston) 110 110
15 AT Austria Wien R&D AT R&D Austria (Wien) 70 70

This table is synchronized with SAP data that was stored in

the project was created. An update should not be necessary
durations. However, if you wish to calculate with current
certain release time, this table can be overwritten with
Hourly_Rates_.xlsx
Care is assumed and the responsibility lies with the pro
If you have technical problems, please contact
 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

38 38 38 38 40 42 44 46 48 48 48 48 48
34 34 34 34 36 36 38 40 42 42 42 42 42
160 160 160 160 170 170 180 180 190 190 190 190 190
46 46 46 46 48 50 55 60 60 60 60 60 60
46 46 46 46 48 48 50 50 50 55 55 55 60
95 95 95 95 100 100 105 110 110 115 115 120 125
36 36 36 36 38 40 42 44 46 46 46 46 46
60 60 60 60 60 65 70 70 75 75 75 75 75
12 12 12 12 14 14 16 16 18 18 18 18 18
110 110 110 110 115 120 125 130 135 135 135 135 135
70 70 70 70 70 75 75 80 80 80 80 80 80

a that was stored in YXPLM at the time

uld not be necessary for typical project
alculate with current hourly rates at a
n be overwritten with newer data:
ates_.xlsx
bility lies with the project manager.
lems, please contact ELO.
2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043

48 48 48 48 48 48 48 48 48 48 48 48 48
42 42 42 42 42 42 42 42 42 42 42 42 42
190 190 190 190 190 190 190 190 190 190 190 190 190
60 60 60 60 60 60 60 60 60 60 60 60 60
60 60 60 60 60 60 60 60 60 60 60 60 60
130 130 130 130 130 130 130 130 130 130 130 130 130
46 46 46 46 46 46 46 46 46 46 46 46 46
75 75 75 75 75 75 75 75 75 75 75 75 75
18 18 18 18 18 18 18 18 18 18 18 18 18
135 135 135 135 135 135 135 135 135 135 135 135 135
80 80 80 80 80 80 80 80 80 80 80 80 80
2044 2045 2046 2047 2048 2049 2050

48 48 48 48 48 48 48
42 42 42 42 42 42 42
190 190 190 190 190 190 190
60 60 60 60 60 60 60
60 60 60 60 60 60 60
130 130 130 130 130 130 130
46 46 46 46 46 46 46
75 75 75 75 75 75 75
18 18 18 18 18 18 18
135 135 135 135 135 135 135
80 80 80 80 80 80 80
Suggested processing sequence for initial fill
1. startup curve 1st to 5th year

2. Sales share and discount in the regions

Since this is a market sales assessment, the market discount rates must
be given here which are to be anticipated in the individual regions (not
the discount rates as opposed to the national representative
companies!)

3. Name and/ or type designation / value

Select the name (e.g.) valve and if nec.

4. Select type

5a. Enter the total NetSales of the assembly then percentage distribution of 5a 5a
the products in the assembly against total sales.

5b or enter the sales (quantity in ..) individually for each product. 5b 5b

A T T E N T I O N: Formulas will be signed over!

6. Enter PC
Phase 0 = project application = spec. PC
Phase 1 = project approval = target PC

7. List price
8. Assignment of the material (product, feature…) with "X":
a) System requ./spec relevant: if marked with "X" then this position will
be transfered in the system requirements/specifications.
b) Total NetSales rel.: if marked with "X" then this position enters as an
item in the total NetSales and the GCM calculation.
c) Key products: if marked with "X" it enters as an item in the sales
calculation of the key products.
d) Product list if marked with "X" it should be transferred to the product
list later.
e) Reference product (should be adopted as the reference product in
system specs/requ. (PP/ PS).
f) startupdelay:
Individual positions can be labelled with a startup delay of one year. In
other words, the anticipated AUD with a product is only taken into
account after the startup delay. 0: no delay; 1: delay of the startup curve
by one year
g) Use "0" or "1" to indicate which startup curve should apply (see item 1).

h) Reference module:
Here, a reference can be made to the relevant reference module. If e.g. a
feature is defined, the allocation to a new or an already existing module
can be made via a reference key (e.g. figure).
 What Is Net Present Value (NPV)?
Net present value (NPV) is the difference between the present value of cash inf
investment planning to analyze the profitability of a projected investment or pr

Key Takeaways
Net Present Value
NPV Net present value, or NPV, is used to calculate the current total value of a futur
If the NPV of a project or investment is positive, it means that the discounted pr
To calculate NPV, you need to estimate future cash flows for each period and de

Net Present Value (NPV) Formula

𝑛
𝑅𝑡
𝑁𝑃𝑉 = ෍
(1 + 𝑊𝐴𝐶𝐶)
𝑡=1

Important to know
Festo uses the NPV, avoiding imputed figures such as depreciation. Cash in and
If necessary, a correction must be calculated. For example, in the COGS (Cost of

What is "Internal rate of return" (IRR)?

The internal rate of return (IRR) is a metric used in financial analysis to estimate
cash flows equal to zero in a discounted cash flow analysis. IRR calculations rel
annual return that makes the NPV equal to zero.
Generally speaking, the higher an internal rate of return, the more desirable an
multiple prospective investments or projects on a relatively even basis. In gene
nternal Rate of Return

probably would be considered the best.

IRR

Key Takeaways
The internal rate of return (IRR) is the annual rate of growth that an investment
IRR is calculated using the same concept as net present value (NPV), except it s
IRR is ideal for analyzing capital budgeting projects to understand and compare

Internal Rate of Return (IRR) Formula

 Internal Ra
I Important to know
A Festo specific "hurdle rate" is measured on basis of the IRR. As you can see i
If the IRR is greater than the WACC, the result must always be a positive NPV. T

What is "Time to profit" (TtP)?

The term "Time to profit" (TtP) refers to the amount of time it takes, to recover
and corporations mainly invest their money to get paid back, which is why the T
attractive it becomes.

A few years ago, Festo used the "Payback Period" to calculate this duration. Ho
"project start", as is now done with the key figure "Time to Profit". Another dif
to profit" is in principle extended.

Key Takeaways
start of the calculation is the "project start"
calculation with discounted payment flows
Time to Profit
TtP

Time to Profit Formula

Important to know
cost cash flows are calculatet with cost of sales and "G&A" costs (general and
The numbers are determined monthly, depending on the exact start of the proje
een the present value of cash inflows and the present value of cash outflows over a period of time. NPV is used in capital budgetin
y of a projected investment or project. NPV is the result of calculations used to find today’s value of a future stream of payments.

the current total value of a future stream of payments.

, it means that the discounted present value of all future cash flows related to that project or investment will be positive, and there
ash flows for each period and determine the correct discount rate.

𝑊𝐴𝐶𝐶)𝑡

uch as depreciation. Cash in and cash out are shown on the timeline, when the payment is booked or the cost happen.
or example, in the COGS (Cost of goods sold), the depreciation is calculated out by using a value named "depreciation correction"

d in financial analysis to estimate the profitability of potential investments. IRR is a discount rate that makes the net present value
ow analysis. IRR calculations rely on the same formula as NPV does. Keep in mind that IRR is not the actual dollar value of the proj
o.
of return, the more desirable an investment is to undertake. IRR is uniform for investments of varying types and, as such, can be u
n a relatively even basis. In general, when comparing investment options with other similar characteristics, the investment with th

te of growth that an investment is expected to generate.

t present value (NPV), except it sets the NPV equal to zero.
ects to understand and compare potential rates of annual return over time.
 asis of the IRR. As you can see in the formula, Tthere is a dependency between the NPV and the IRR.
must always be a positive NPV. Therefore, only the IRR is used as "hurdle rate".

ount of time it takes, to recover the cost of an investment. Simply put, it is the length of time an investment reaches a breakeven p
get paid back, which is why the Time to profit" (TtP) is so important. In essence, the shorter Time to profit" (TtP) an investment ha

od" to calculate this duration. However there was a big difference: The "start of sales" was used as the start of the calculation and
ure "Time to Profit". Another difference is the use of the discounted payment flows, so that later revenues are of less importance a

and "G&A" costs (general and administration). Both costs are calculated as a flat rate as a percentage of the "Net Sales".
ng on the exact start of the project
 is used in capital budgeting and
ture stream of payments.

Profitability
Absolute
t will be positive, and therefore

he cost happen.
d "depreciation correction".

makes the net present value (NPV) of all

tual dollar value of the project. It is the

ypes and, as such, can be used to rank

ics, the investment with the highest IRR
rofitability
Relative
 Profit
Rel
ment reaches a breakeven point. People
fit" (TtP) an investment has, the more
start on project start
payback period with

start of the calculation and not the

ues are of less importance and the "time
(short term assessment)

e of the "Net Sales".