This document presents a financial analysis for a proposed Christian website called "Why Jesus.co". It shows initial investments of $30,120 required to build the site in year 1. Funding is expected to grow from $7,500 in year 1 to $210,000 in year 3 from donations and advertising. Costs are also projected to increase from $11,400 in year 1 to $130,300 in year 3 as the site expands. The net cash flow turns positive in year 2 and grows in year 3, with an estimated NPV of $65,793.60 and IRR of 68.46%, suggesting the site would be financially viable.

1. A CHRISTIAN WEBSITE - WHY JESUS.CO?
8-Aug-13
Company Data
Required rate of return 10%
Tax - Exempt 0%
Initial Investment in Web Site YEAR 1 2 3
Website Construction $30,000.00
Hosting $100.00
Domain Name $20.00
Total Initial Investments $30,120.00
Funding YEAR 1 2 3
Major Donor 1 $3,000.00 $25,000.00 $100,000.00
Major Donor 2 $2,000.00 $15,000.00 $50,000.00
Member Donations $2,000.00 $15,000.00 $50,000.00
Advertisement Revenue $500.00 $2,000.00 $10,000.00
Other $0.00 $0.00 $0.00
[Other] $0.00 $0.00 $0.00
[Other] $0.00 $0.00 $0.00
[Other] $0.00 $0.00 $0.00
[Other] $0.00 $0.00 $0.00
Total Funding $7,500.00 $57,000.00 $210,000.00
Costs (Excluding Initial Capital Investments) YEAR 1 2 3
Marketing $9,000.00 $12,000.00 $16,000.00
Property and Equipment (Office Rental and Utilities, Office Equipment) $0.00 $0.00 $30,000.00
Website Maintenance $2,400.00 $6,000.00 $12,000.00
Customer Support $0.00 $0.00 $12,000.00
Depreciation on capital expenditures (calculation uses three-year period) $0.00 $0.00 $10,000.00
Hosting, Domain-name $0.00 $200.00 $300.00
Back Office Expenses/Personnel $0.00 $0.00 $50,000.00
[Other costs] $0.00 $0.00 $0.00
[Other costs] $0.00 $0.00 $0.00
[Other costs] $0.00 $0.00 $0.00
Total Costs $11,400.00 $18,200.00 $130,300.00
Totals YEAR 1 2 3
Net Benefits (Costs) ($3,900.00) $38,800.00 $79,700.00
Tax $0.00 $0.00 $0.00
Value after tax ($3,900.00) $38,800.00 $79,700.00
Depreciation added back $0.00 $0.00 $10,000.00
Cash flow -$30,120.00 ($3,900.00) $38,800.00 $89,700.00
Cumulative cash flow -$30,120.00 ($34,020.00) $4,780.00 $94,480.00
Evaluation Metrics
Net present value (NPV) $65,793.60
Internal rate of return (IRR) 68.46%
Payback period (in years) 1.88