Prof_Prakash,
 In reference to a response you posted from a different student..
 Can you please explain to me how you come up with the break even  analysis numbers (Actual Calculations) for the scenario below. 
 Dear Sponsor,
 With reference to your mail dated 1st September 2013 regarding the  selection of project we have done our analysis and based on our review  we recommend to pursue Palomino for future investment analysis. We have  arrived at the decision based on our analysis and facts provided by you.  The principal differentiator for this project has been the return on  investment and risk involved. Our detailed analysis is presented below:
 
 Five phases of the Project
 
 1. Project conception and initiation: Define project
 An idea for a project will be carefully examined to determine whether or  not it benefits the organization. During this phase the feasibility,  risk involved and return of investment is actually analysed. This phase  we are right now in and will require a detailed feasibility study before  making the final investment decision.
 2. Project planning
 A project plan, project charter and/or project scope may be put in  writing, outlining the work to be performed. During this phase, a team  should prioritize the project, calculate a budget and schedule, and  determine what resources are needed. This is the next and most important  phase. 
 3. Project execution
 Resources' tasks are distributed and teams are informed of  responsibilities. Maximum resources and cost is involved at this time.  The critical path and 
 4. Project performance and control
 Project managers will compare project status and progress to the actual  plan, as resources perform the scheduled work. This is process to keep  the project on schedule and within budgeted cost. This also involves  quality checks and scope change management.The critical path, cost and  quality is to be measured and managed closely for success of the  project.
 
 5. Project close
 After project tasks are completed and the client has approved the  outcome, an evaluation is necessary to highlight project success and/or  learn from project history. This is the last phase where in all  documentation is handed over to owner. The post evaluation may or may  not be a part of the contract. Before project closing all contracts  should be closed and bills should be settled.
 
 Project Juniper:
 Schedule Risk: Low
 Cost: $325000
 Durations to completion: 6 months
 ROI: $250,000 yearly for 2 years total = $ 500,000
 Project life: 2-3 years
 Positives:
-  Product is feasible,
-  Risk is low.
-  Forecasting will be accurate. 
-  Product breakeven is around 2 years
-  Meets client requirement of product launch in next 12 months.
Negatives: Company's future at risk as product life is only 2-3 years.
 Recommendation: No
 
 Project Stargazer:
 Schedule Risk: Very High
 Cost: $ 1025000
 Durations to completion: More than 1year 
 ROI: ROI of $300,000 first year; $550,000 the second year; and $750,000 the third year. 
 ROI total = $ 1600
 Project life: 7 years
 
 Positives:
Negatives:
-  Risk is high
-  Forecasting has high variance.
-  Product breakeven is around 2 years
-  Does not meet client requirement of product launch in next 12 months.
Recommendation: Although a sunk cost is involved bust investing further  has no guarantee of returns and also the product timelines don't meet  the clients schedule. Need high level analysis for making any investment  decision.
 Project Palomino:
 Schedule Risk: Medium
 Cost: $655000
 Durations to completion: 9 months
 ROI: $450,000 yearly for 5 years total = $ 2250,000
 Project life: 7 years
 Positives:
-  Product is feasible,
-  Risk is medium can be mitigated or transferred.
-  Forecasting will be fairly accurate
-  Product breakeven is around 1.5 years
-  Meets client requirement of product launch in next 12 months.
Negatives: Manageable
 Recommendation: Project is recommended for further analysis based on financial and commercial terms and conditions.