Welcome back. So, in the last video we tabulated all the costs of the proposed system. In this video we will tabulate all the benefits of the proposed system, and then calculate the net present value. So, let's get started. So, the first key benefit of the proposed system is savings in drug costs. So, the saving in drug cost is calculated as the total number of procedures which is in P8 times the savings in drug costs per case, which is stored in cell P13. So, that's the annual saving in drug costs, and then we drag this across to calculate this number for every year. The second savings is referred to as other savings per case. So again, we multiply the number of cases per year divided by other savings per case which is in cell P14. We can drag this across to get the other savings for each year. Finally, increase in reimbursement. So, we said that operating rooms produce 40 percent of the revenue of the hospital, and the proposed system is expected to increase the reimbursement rate by one and a half percent. So, let's calculate this number as operating room revenue which is 40 percent of the hospital revenue times a one and a half percent increase. So, this is the increase in reimbursement. We can just drag this across to calculate the increase in reimbursement. Now, we can calculate the total benefits from the proposed system for each year. So, we just sum the three benefits which for the year one is in cell D14-D16, and then we can just drag this across to calculate the benefits for each year. Now, we have the costs as well benefits for each year. So, now we can draw the projected cash flow from the investment. So, the initial investment is in cell C12. So we just get this here, and then from year 1-10 we calculate the net benefits as the sum of benefits plus costs. So, we can just drag this to calculate the net benefits for each year. So, now we have the projected cash flows from the investment, from the initial investment to the annual benefits for each year. Now, we can calculate the NPV of the project. So, NPV of the project is, is the initial investment plus the discounted cash flow from year 1-10. So, we're going to use an Excel function called NPV to calculate the real NPV. So, the real NPV is the initial investment which is in cell C12 plus the discounted cash flows from year 1-10, and the NPV function of Excel can be used to calculate the total value of the discounted cash flows. So, the NPV function has two parameters the rate, the first parameter is the rate which is stored in cell B3, and the next parameter are the cash flows which are in cell D19-M19. So, now we calculate the NPV of the investment as 10 million plus. We can also calculate the internal rate of return of the proposed system. So, the internal rate of return can be calculated using the Excel function which is IRR of all the cash outflows and the inflows. IRR is the rate which equates the initial investment with the all the other cash inflows. So, in this case the rate is 202 percent. So in this video we calculated the benefits, and then we calculated the net benefits, and using the projected cash flows we calculated the NPV and IRR of the proposed system. In the next video we will look at what this analysis really means. Thank you.