applied project

Assignment23.zip

business_case_financials_assignment.xlsx

Financial Analysis for Project Name
Created by:		Date:
Note: Change the inputs, shown in green below (i.e. interest rate, number of years, costs, and benefits). Be sure to double-check the formulas based on the inputs.
Discount rate	8.00%
Assume the project is completed in Year 0			Year
	0	1	2	3	Total
Costs	140,000	40,000	40,000	40,000
Discount factor	1.00	0.93	0.86	0.79
Discounted costs	140,000	37,200	34,400	31,600	243,200
Benefits	0	200,000	200,000	200,000
Discount factor	1.00	0.93	0.86	0.79
Discounted benefits	0	186,000	172,000	158,000	516,000
Discounted benefits - costs	(140,000)	148,800	137,600	126,400	272,800	NPV
Cumulative benefits - costs	(140,000)	8,800	146,400	272,800
ROI	112%
	Payback in Year 1
Assumptions
Enter assumptions here

Financial Analysis for Project Name
Created by:		Date:
Note: Change the inputs, shown in green below (i.e. interest rate, number of years, costs, and benefits). Be sure to double-check the formulas based on the inputs.
Discount rate	8.00%
Assume the project is completed in Year 0			Year
	0	1	2	3	4	5	Total
Costs	50,000	0	0	0	0	0
Discount factor	1.00	0.93	0.86	0.79	0.74	0.68
Discounted costs	50,000	- 0	- 0			- 0	50,000
Benefits	0	10,000	15,000	20,000	20,000	20,000
Discount factor	1.00	0.93	0.86	0.79	0.74	0.68
Discounted benefits	0	9,300	12,900	15,800	14,800	13,600	66,400
Discounted benefits - costs	(50,000)	9,300	12,900	15,800	14,800	13,600	16,400	NPV
Cumulative benefits - costs	(50,000)	(40,700)	(27,800)	(12,000)	2,800	16,400
ROI	33%
	Payback in Year 1
Assumptions
Enter assumptions here

	XXX Project Cost Estimate
Prepared by:	Date:
Note: Change the WBS items and other entries to meet your project needs. This data is from Figure 7-1 of Schwalbe's text
Information Technology Project Management, Fourth Edition. Also make sure the formulas work properly based on the data you enter.
	# Units/Hrs.	Cost/Unit/Hr.	Subtotals	WBS Level 1 Totals	% of Total
WBS Items
1. Project Management				$306,300	20%
1.1 Project manager	960	$100	$96,000
1.2 Project team members	1920	$75	$144,000
Contractors (10% of software development and testing)			$66,300
2. Hardware				$76,000	5%
2.1 Handheld devices	100	$600	$60,000
2.2 Servers	4	$4,000	$16,000
3. Software				$614,000	40%
3.1 Licensed software	100	$200	$20,000
3.2 Software development*			$594,000
4. Testing (10% of total hardware and software costs)			$69,000	$69,000	5%
5. Training and Support				$202,400	13%
5.1 Trainee cost	100	$500	$50,000
5.2 Travel cost	12	$700	$8,400
5.3 Project team members	1920	$75	$144,000
6. Reserves (20% of total estimate)			$253,540	$253,540	17%
Total project cost estimate				$1,521,240
* See software development estimate

* Software development
Contractor labor estimate	3000	$150	$450,000
Project team member estimate	1920	$75	$144,000
Total labor estimate			$594,000
Function point estimate	Quantity	Conversion Factor	Function Points
External inputs	10	4	40
External interface files	3	7	21
External outputs	3	5	15
External queries	3	4	12
Logical internal tables	6	10	60
Total function points			148
Java 2 languange equivalency value			46
Source lines of code (SLOC) estimate			6,808
Productivity *KSLOC^Penalty (person months)	30.27
Total labor hours (160 hours/month)	4,842.55
Cost/labor hour ($120/hour)	$120
Total software development estimate	581,106