Purchase Price

Acquisition
Usage Cost
End of Life
Total Cost

0
1650000

1890000
36000
1854000

820000

1890000

1890000

2470000

1890000

1890000

Purchase
1200
300
100
50

Year
1

1200000
300000
100000
50000
1650000

Acquisition
85
480
150

8104000

Usage Cost
700
120
100
120
30

700000
1440
1200
120000
30000
820000

450
2640

Year
Purchase Price
Acquisition

Usage Cost

End of Life

1440000

Equipment
Softwares
Sourcing
Administration
Installation
Equipment Support
Network Support
Warranty
Downtime
Salvage Value
Total

0
1200000
1650000
450000
255000
255630
630
700000
0
0 700000
0
0
0
0
2605630

1440000
1200
1931200
40000
450000
0
0
1931200

Paying installation cost in 1st year instead of year 0

Year

450000 (Downtime)
Equipment
Purchase Price
1890000
Softwares
Sourcing
Acquisition
1350000
Administration
Installation
Equipment Support
Usage Cost Network Support
Warranty
Downtime
End of Life
Salvage Value
Total

0
1200000
1650000
450000
255000
255630
630
0
0
0
0
0
0
0
0
1905630

700000
1440000
1200 2631200
40000
450000
0
0
2631200

Paying Equipment Support cost in 2 installments on year 2 & 3

Year
Equipment
Purchase Price
Softwares
Sourcing
Acquisition
Administration
Installation
Equipment Support
Usage Cost Network Support
Warranty
Downtime
End of Life
Salvage Value

0
1200000
1650000
450000
255000
255630
630
0
0
0
0
0
0
0
0

700000
0
1200 1191200
40000
450000
0
0

Total

1905630

1191200

Paying Equipment Support cost in 2 installments on year 1 & 3

Year
Purchase Price
Acquisition

Usage Cost

End of Life

Equipment
Softwares
Sourcing
Administration
Installation
Equipment Support
Network Support
Warranty
Downtime
Salvage Value
Total

0
1200000
1650000
450000
255000
255630
630
0
0
0
0
0
0
0
0
1905630

700000
2160000
1200 3351200
40000
450000
0
0
3351200

Year
2

1440000
1200
1931200
40000
450000
0
0
1931200

Year

Values
PV Factor
0 2605630 2605630
1 1931200 1724286
2 1931200 1539541
3 1895200 1348966
Total
7218422

Year

Values
PV Factor
0 1905630 1905630
1 2631200 2349286
2 1931200 1539541
3 1895200 1348966
Total
7143422

Year

Values
PV Factor
0 1905630 1905630
1 1191200 1063571
2 2651200 2113520
3 2615200 1861448
Total
6944170

1440000
1200
1931200
40000
450000
36000
36000
1895200

Year
2

0
1440000
1200 1931200
40000
450000
0
0
1931200

0
1440000
1200 1931200
40000
450000
36000
36000
1895200

Year
2

0
2160000
1200 2651200
40000
450000
0
0

0
2160000
1200 2651200
40000
450000
36000
36000

2651200

2615200

Year
2

3
Year

0
0
1200
40000
450000
0

491200

0
491200

0
2160000
1200 2651200
40000
450000
36000
36000
2615200

Values
PV Factor
0 1905630 1905630
1 3351200 2992143
2
491200 391581.6
3 2615200 1861448
Total
7150802

274252.9

67620.26

Outsourcing and Insourcing

Year 1
Year 2
Year 3
400000
440000
484000
Purchase Price 5.875
5.875
5.875
Freight
0.428
0.428
0.428
Quality
0.132
0.132
0.132
Total
2574000 2831400 3114540
Switching cost
66666.67 66666.67 66666.67
Total Cost 2640667 2898067 3181207
NPV

2400606

2395096

2390088

7185790

Variable
Insourcing Year 1
Year 2
400000
440000
Purchase Material
2.724
2.724
Inbound Freight 0.257
0.257
Direct Labor
0.908
0.908
Engineering & Design
0.093Cost 0.093
Derpreciation 0.222
0.222
Corporate office 0.099
Admin
0.099
Variable
0.908
0.908
Total Unit Cost
2084400 2292840

Insourcing Year 1
Year 2
Year 3
400000
440000
484000
Purchase Material
2.724
2.724
2.724
Inbound Freight 0.257
0.257
0.257
Direct Labor
0.908
0.908
0.908
Engineering & Design
0.093Cost 0.093
0.093
Derpreciation 0.222
0.222
0.222
Corporate office 0.099
Admin
0.099
0.099
Total Unit Cost
1721200 1893320 2082652

NPV

1564727

1721200

1893320

5179247

NPV

1894909

2084400

Variable + fixed
Insourcing Year 1
Year 2
Year 3
400000
440000
484000
Purchase Material
2.724
2.724
2.724
Inbound Freight 0.257
0.257
0.257
Direct Labor
0.908
0.908
0.908
Engineering & Design
0.093Cost 0.093
0.093
Derpreciation 0.222
0.222
0.222
Corporate office 0.099
Admin
0.099
0.099
Variable
0.908
0.908
0.908
Fixed
1.362
1.362
1.362
Total Unit Cost
2629200 2892120 3181332

Year 3
484000
2.724
0.257
0.908
0.093
0.222
0.099
0.908
2522124

2292840

6272149

NPV

2390182

2629200

2892120

7911502

Quote 1 Original Wire

Unit price
30
Packaging Cost 0.75
Tooling
6000
Freight cost
5.2 per hundred pounds

Requirement

5000

Quote 2
Unit price
19.5
Shipping Lead
8 weeks
time
Packaging Cost
2
Tooling
3000
Freight
100 per shipment
ocean transport12000
Port Handling 3600
custom duty
0.975
4875
custom broker fee300 per shipment
transportation LA 18.6
to Dtper hundred pounds
Warehousing

Quote 1
Month
Freight Cost
Unit price
Packaging
Tooling

1
2600
150000
3750
500
156850

2
2600
150000
3750
500
156850

3
2600
150000
3750
500
156850

4
2600
150000
3750
500
156850

5
2600
150000
3750
500
156850

6
2600
150000
3750
500
156850

7
2600
150000
3750
500
156850

8
2600
150000
3750
500
156850

Total Cost for1882200

1 year
Unit Price
31.37
Quote 2
Month
1
2
3
4
5
6
7
8
Unit price
97500
97500
97500
97500
97500
97500
97500
97500
Tooling
250
250
250
250
250
250
250
250
Packaging
10000
10000
10000
10000
10000
10000
10000
10000
Inland Transportation
600
600
600
600
600
600
600
600
Freight Forward 100
100
100
100
100
100
100
100
Ocean Transport12000
12000
12000
12000
12000
12000
12000
12000
Insurance
487.5
487.5
487.5
487.5
487.5
487.5
487.5
487.5
Port Handling Charges
3600
3600
3600
3600
3600
3600
3600
3600
Custom Duty
4875
4875
4875
4875
4875
4875
4875
4875
Broker Fees
300
300
300
300
300
300
300
300
Transportation Det
9300
to LA
9300
9300
9300
9300
9300
9300
9300
Warehousing
5000
5000
5000
5000
5000
5000
5000
5000
Cost of Capital 14625
14625
14625
14625
14625
14625
14625
14625
Cost of hedging 400
400
400
400
400
400
400
400
Admin Cost
100
100
100
100
100
100
100
100
Visit
1666.67 1666.67 1666.67 1666.67 1666.67 1666.67 1666.67 1666.67
Total
160804.2 160804.2 160804.2 160804.2 160804.2 160804.2 160804.2 160804.2

Total Cost

1929650

Unit Price

32.16083

9
2600
150000
3750
500
156850

10
2600
150000
3750
500
156850

11
2600
150000
3750
500
156850

12
2600
150000
3750
500
156850

9
10
11
12
97500
97500
97500
97500
250
250
250
250
10000
10000
10000
10000
600
600
600
600
100
100
100
100
12000
12000
12000
12000
487.5
487.5
487.5
487.5
3600
3600
3600
3600
4875
4875
4875
4875
300
300
300
300
9300
9300
9300
9300
5000
5000
5000
5000
14625
14625
14625
14625
400
400
400
400
100
100
100
100
1666.67 1666.67 1666.67 1666.67
160804.2 160804.2 160804.2 160804.2

1170000
3000
120000
7200
1200
144000
5850
43200
58500
3600
111600
60000
175500
4800
1200
20000.04

Advance Technologies
55000
50000
Month
1
2
Tooling Cost 187500
187500
Quoted Price 7040000 6400000
Transportation Cost
962500
875000
Duties and Custom
495000
450000
Insurance
137500
125000
Ordering, Inbound,
261250
Quality 237500
Total
9083750 8275000
Total Price 83125000
Per Unit Price 166.25

40000
3
187500
5120000
700000
360000
100000
190000
6657500

40000
4
187500
5120000
700000
360000
100000
190000
6657500

45000
5
187500
5760000
787500
405000
112500
213750
7466250

Year 1
35000
35000
6
7
187500
187500
4480000 4480000
612500
612500
315000
315000
87500
87500
166250
166250
5848750 5848750

40000
8
187500
5120000
700000
360000
100000
190000
6657500

DriveTech Company
55000
50000
40000
40000
45000
Month
1
2
3
4
5
Tooling Cost229166.67 229166.7 229166.7 229166.7 229166.7
Quoted Price 7755000 7050000 5640000 5640000 6345000
Transportation Cost
335500
305000
244000
244000
274500
Duties and Custom 0
0
0
0
0
Insurance
82500
75000
60000
60000
67500
Ordering, Inbound,
220000
Quality 200000
160000
160000
180000
Total
8622166.7 7859167 6333167 6333167 7096167
Total Price 79050000
Per Unit Price 158.1

Year 1
35000
35000
40000
6
7
8
229166.7 229166.7 229166.7
4935000 4935000 5640000
213500
213500
244000
0
0
0
52500
52500
60000
140000
140000
160000
5570167 5570167 6333167

D-Drive Systems
55000
50000
Month
1
2
Tooling Cost 187500
187500
Quoted Price 7535000 6850000
Transportation Cost
770000
700000
Duties and Custom 0
0
Insurance
165000
150000
Ordering, Inbound,
178750
Quality 162500
Total
8836250 8050000
Total Price 80875000
Per Unit Price 161.75

40000
3
187500
5480000
560000
0
120000
130000
6477500

40000
4
187500
5480000
560000
0
120000
130000
6477500

45000
5
187500
6165000
630000
0
135000
146250
7263750

Year 1
35000
35000
6
7
187500
187500
4795000 4795000
490000
490000
0
0
105000
105000
113750
113750
5691250 5691250

Parksoo Technologies
Year 1

40000
8
187500
5480000
560000
0
120000
130000
6477500

55000
50000
40000
40000
45000
35000
35000
40000
Month
1
2
3
4
5
6
7
8
Tooling Cost183333.33 183333.3 183333.3 183333.3 183333.3 183333.3 183333.3 183333.3
Quoted Price 7150000 6500000 5200000 5200000 5850000 4550000 4550000 5200000
Transportation1100000
Cost
1000000
800000
800000
900000
700000
700000
800000
Duties and Custom
522500
475000
380000
380000
427500
332500
332500
380000
Insurance
192500
175000
140000
140000
157500
122500
122500
140000
Ordering, Inbound,
123750
Quality 112500
90000
90000
101250
78750
78750
90000
Total
9272083.3 8445833 6793333 6793333 7619583 5967083 5967083 6793333
Total Price 84825000
Per Unit Price 169.65

Year 2
40000
9
187500
5120000
700000
360000
100000
190000
6657500

40000
10
187500
5120000
700000
360000
100000
190000
6657500

40000
11
187500
5120000
700000
360000
100000
190000
6657500

40000
66000
12
13
187500
187500
5120000 8448000
700000 1155000
360000
594000
100000
165000
190000
313500
6657500 10863000
99300000
165.5

60000
14
187500
7680000
1050000
540000
150000
285000
9892500

48000
15
187500
6144000
840000
432000
120000
228000
7951500

48000
16
187500
6144000
840000
432000
120000
228000
7951500

54000
17
187500
6912000
945000
486000
135000
256500
8922000

Year 2
40000
40000
40000
40000
66000
60000
48000
48000
54000
9
10
11
12
13
14
15
16
17
229166.7 229166.7 229166.7 229166.7 229166.7 229166.7 229166.7 229166.7 229166.7
5640000 5640000 5640000 5640000 9306000 8460000 6768000 6768000 7614000
244000
244000
244000
244000
402600
366000
292800
292800
329400
0
0
0
0
0
0
0
0
0
60000
60000
60000
60000
99000
90000
72000
72000
81000
160000
160000
160000
160000
264000
240000
192000
192000
216000
6333167 6333167 6333167 6333167 10300767 9385167 7553967 7553967 8469567
94310000
157.1833

Year 2
40000
9
187500
5480000
560000
0
120000
130000
6477500

40000
10
187500
5480000
560000
0
120000
130000
6477500

40000
11
187500
5480000
560000
0
120000
130000
6477500

40000
66000
12
13
187500
187500
5480000 9042000
560000
924000
0
0
120000
198000
130000
214500
6477500 10566000
96600000
161

60000
14
187500
8220000
840000
0
180000
195000
9622500

48000
15
187500
6576000
672000
0
144000
156000
7735500

48000
16
187500
6576000
672000
0
144000
156000
7735500

54000
17
187500
7398000
756000
0
162000
175500
8679000

Year 2

40000
40000
40000
40000
66000
60000
48000
48000
54000
9
10
11
12
13
14
15
16
17
183333.3 183333.3 183333.3 183333.3 183333.3 183333.3 183333.3 183333.3 183333.3
5200000 5200000 5200000 5200000 8580000 7800000 6240000 6240000 7020000
800000
800000
800000
800000 1320000 1200000
960000
960000 1080000
380000
380000
380000
380000
627000
570000
456000
456000
513000
140000
140000
140000
140000
231000
210000
168000
168000
189000
90000
90000
90000
90000
148500
135000
108000
108000
121500
6793333 6793333 6793333 6793333 11089833 10098333 8115333 8115333 9106833
1.01E+08
168.9167

Year 2
42000
42000
18
19
187500
187500
5376000 5376000
735000
735000
378000
378000
105000
105000
199500
199500
6981000 6981000

48000
20
187500
6144000
840000
432000
120000
228000
7951500

48000
21
187500
6144000
840000
432000
120000
228000
7951500

48000
22
187500
6144000
840000
432000
120000
228000
7951500

48000
23
187500
6144000
840000
432000
120000
228000
7951500

48000
24
187500
6144000
840000
432000
120000
228000
7951500

Year 2
42000
42000
48000
48000
48000
48000
48000
18
19
20
21
22
23
24
229166.7 229166.7 229166.7 229166.7 229166.7 229166.7 229166.7
5922000 5922000 6768000 6768000 6768000 6768000 6768000
256200
256200
292800
292800
292800
292800
292800
0
0
0
0
0
0
0
63000
63000
72000
72000
72000
72000
72000
168000
168000
192000
192000
192000
192000
192000
6638367 6638367 7553967 7553967 7553967 7553967 7553967

Year 2
42000
42000
18
19
187500
187500
5754000 5754000
588000
588000
0
0
126000
126000
136500
136500
6792000 6792000

Year 2

48000
20
187500
6576000
672000
0
144000
156000
7735500

48000
21
187500
6576000
672000
0
144000
156000
7735500

48000
22
187500
6576000
672000
0
144000
156000
7735500

48000
23
187500
6576000
672000
0
144000
156000
7735500

48000
24
187500
6576000
672000
0
144000
156000
7735500

42000
42000
48000
48000
48000
48000
48000
18
19
20
21
22
23
24
183333.3 183333.3 183333.3 183333.3 183333.3 183333.3 183333.3
5460000 5460000 6240000 6240000 6240000 6240000 6240000
840000
840000
960000
960000
960000
960000
960000
399000
399000
456000
456000
456000
456000
456000
147000
147000
168000
168000
168000
168000
168000
94500
94500
108000
108000
108000
108000
108000
7123833 7123833 8115333 8115333 8115333 8115333 8115333