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  • Year 0 Year 1 Year 2 Year 3 Year 4 Year 5: Tangible Benefit Worksheet

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    Mikel
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    The document presents cost-benefit analyses for a proposed IT system implementation. It outlines one-time costs of $6,850 for hardware and software. It estimates annual tangible benefits increasing from $22,000 in year 1 to $23,000 in years 2-5, for a total present value of $82,015. Recurring annual costs are estimated to be $10,000 each year. The overall net present value is calculated to be $39,118, indicating the project would provide positive economic returns.

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    Example for computing data of a system

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    cba

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    The document presents cost-benefit analyses for a proposed IT system implementation. It outlines one-time costs of $6,850 for hardware and software. It estimates annual tangible benefits increasing from $22,000 in year 1 to $23,000 in years 2-5, for a total present value of $82,015. Recurring annual costs are estimated to be $10,000 each year. The overall net present value is calculated to be $39,118, indicating the project would provide positive economic returns.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    20 views4 pages

    Year 0 Year 1 Year 2 Year 3 Year 4 Year 5: Tangible Benefit Worksheet

    Uploaded by

    Mikel
    The document presents cost-benefit analyses for a proposed IT system implementation. It outlines one-time costs of $6,850 for hardware and software. It estimates annual tangible benefits increasing from $22,000 in year 1 to $23,000 in years 2-5, for a total present value of $82,015. Recurring annual costs are estimated to be $10,000 each year. The overall net present value is calculated to be $39,118, indicating the project would provide positive economic returns.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 4

    One Time Cost Worksheet

    Quantity Hardware Cost Software Cost


    Sublime Text 1,000.00
    QR Code Generator 250.00
    Sticky Paper 100.00
    My SQL Workbench 1,000.00
    Eclipse ( Android Java ) 500.00
    Data Analysts 1,000.00
    Documents 1,000.00
    System Analysts 1,000.00
    Program 1,000.00
    6,850.00
    TOTAL 6,850.00

    Tangible Benefit Worksheet Year 0 Year 1 Year 2 Year 3 Year 4 Year 5


    QR Code damage 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 25,000.00
    Management of implemented system 5,000.00 6,000.00 6,000.00 6,000.00 6,000.00 29,000.00
    Increase Flexibility 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 25,000.00
    Optimize speed result of informations 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 25,000.00

    Reduce Staffing cost (Incl. Overtime) 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 10,000.00

    Total 22,000.00 23,000.00 23,000.00 23,000.00 23,000.00 114,000.00

    Recurring Cost Worksheet


    Hardware Maintenance 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 5,000.00
    Application Software Maintenance 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 5,000.00
    Internet speed need 5mbps 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 25,000.00
    Supplies 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 15,000.00
    Zero Web Hosting - - - - - -

    Total 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 50,000.00


    Present Value 12% tax
    0.89286 0.79719 0.71178 0.63552 0.56743
    12%j 12% 12% 12% 12%
    m(yearly)
    1 2 3 4 5
    1t 2 3 4 5

    Economic Feasibility Analysis


    Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
    Net Economic Benefit 0 22,000.00 23,000.00 23,000.00 23,000.00 23,000.00
    Discount Rate 12% 1 0.8928 0.7972 0.7118 0.6355 0.5674
    Present Value of Benefit 0 19,641.60 18,335.60 16,371.40 14,616.50 13,050.20
    Net Present Value of all Benefits 0 19,641.60 37,977.20 54,348.60 68,965.10 82,015.30 82,015.30

    One Time Cost 6,850.00 Year 1 Year 2 Year 3 Year 4 Year 5


    Recurring Costs 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
    Discount Rate (12%) 0.8928 0.7972 0.7118 0.6355 0.5674
    Present Value Recurring Cost 8,928.00 7,972.00 7,118.00 6,355.00 5,674.00
    Net Present Value of all Costs 6,850.00 15,778.00 23,750.00 30,868.00 37,223.00 42,897.00 42,897.00
    OverAll Net Present Value 39,118.30
    OverAll Return of Investment 0.43 0.66 0.77 0.83 0.87

    Break Even Analysis

    Yearly Net Present Value Cash Flow 6,850.00 3,863.60 14,227.20 23,480.60 31,742.10 39,118.30
    OverAll Net Present Cash Flow 6,850.00 10,713.60 24,940.80 48,421.40 80,163.50 119,281.80

    Breakeven Analysis
    140,000.00
    120,000.00
    100,000.00
    80,000.00
    60,000.00
    40,000.00
    20,000.00
    -
    1 2 3 4 5 6
    Yea rly Net Pres ent Val ue Ca s h Fl ow OverAl l Net Pres ent Ca s h Fl ow
    450
    375 100
    320 185
    550 50
    30 12
    130 15
    20 362
    45
    6
    10
    1936
    1936
    362
    2298 TOTAL

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