Scribd Logo
Upload

Welcome to Scribd!

  • Remedial SAD

    Uploaded by

    Edward Lolaroh
    3 views2 pages
    This document summarizes the costs, benefits, and net present value of a development project over a 5 year period. It shows that the total development costs in year 0 will be $221,110 with ongoing annual operating costs of $33,108 each year. Benefits are expected to increase sales by $45,000 in year 1 growing to $65,884 in year 5, with $15,000 yearly savings from lower inventory. However, the net present value is negative at -$54,520, so the conclusion is that the project is not economically feasible.

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This document summarizes the costs, benefits, and net present value of a development project over a 5 year period. It shows that the total development costs in year 0 will be $221,110 with ongoing annual operating costs of $33,108 each year. Benefits are expected to increase sales by $45,000 in year 1 growing to $65,884 in year 5, with $15,000 yearly savings from lower inventory. However, the net present value is negative at -$54,520, so the conclusion is that the project is not economically feasible.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    3 views2 pages

    Remedial SAD

    Uploaded by

    Edward Lolaroh
    This document summarizes the costs, benefits, and net present value of a development project over a 5 year period. It shows that the total development costs in year 0 will be $221,110 with ongoing annual operating costs of $33,108 each year. Benefits are expected to increase sales by $45,000 in year 1 growing to $65,884 in year 5, with $15,000 yearly savings from lower inventory. However, the net present value is negative at -$54,520, so the conclusion is that the project is not economically feasible.

    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 2

    Year 0 year 1 year 2

    Development Costs—Personnel
    • 2 Systems Analysts $30/day 22320
    • 2 Programmer Analysts 235/day 174840
    • 1 Development server $21,200 21200
    • 1 Server software $2,750 2750
    Sub total 221110

    • Annual Operating Costs


    • 2 Programmer Analysts $35/day 26040 26040
    • 1 System Librarian $19/day 7068 7068
    Sub total 33108 33108

    Total cost 221110 33108 33108


    PV cost 221110 30098.18 27361.983471

    Benefit
    Sales are expected to increase by $45,000 45000 49500
    Savings from lower inventory levels are expected to be $15,000 15000 15000
    total Benefit 60000 64500
    PV benefit 54545.45 53305.785124
    Net benefit -221110 26892 31392

    cummulative -221110 -194218 -162826

    ROI 4.155835
    BEP 5.679123
    NPV -54520.52

    Kesimpulan : Project secara economic tidak feasible karena NPV $2929 $-54520,5
    year 3 year 4 year 5 year 6

    26040 26040 26040 26040


    7068 7068 7068 7068
    33108 33108 33108 33108

    33108 33108 33108 33108 419758


    24874.53 22613.21 20557.46 18688.6 365304

    54450 59895 65884.5 72472.95


    15000 15000 15000 15000
    69450 74895 80884.5 87472.95 437202.5
    52178.81 51154.29 50222.91 49376.2 310783.5
    36342 41787 47776.5 54364.95

    -126484 -84697 -36920.5 17444.45

    You might also like