Project management Healthcare sytems
Yammie254
MS7-FinancialY-White.xlsxCostBenefitSummary
| Cost-Benefit Summary | |||
| Cost-Benefit Item | Costs | Benefits | Description |
| Plan A: In-House Development | |||
| Consultant time to develop system | 16,800.00 | Developmental | |
| Purchase necessary software platform | 4,200.00 | Developmental | |
| Plan B: Purchase Vertical Software Package | |||
| Purchase price for vendor package | 12,000.00 | Developmental | |
| Tech support contract | 600.00 | Operational After Year 1 | |
| Consultant time to install, configure, and test | 5,600.00 | Developmental | |
| Cost & Benefits Common to Both Plans | |||
| Hardware | 12,500.00 | Developmental | |
| Consultant training time | 4,500.00 | Developmental | |
| Office staff maintenance, backup and updating | 3,120.00 | Per Year Costs (prorate for 1st Year) | |
| Eliminate overtime | 7,020.00 | Operational(prorate for 1st Year) | |
| Eliminate additional position | 31,200.00 | Operational (prorate for 1st Year) | |
| Eliminate daily errors | 3,900.00 | Operational (prorate for 1st Year) |
Cost-Benefit
| Discount Rate | 10% | |||||
| Data For Plan A: In-House Development | ||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Costs: | ||||||
| Consultant time to develop system | 16,800.00 | |||||
| Purchase necessary software platform | 2,500.00 | |||||
| Hardware | 12,500.00 | |||||
| Consultant training time | 4,200.00 | |||||
| Office staff maintenance, backup and updating | 1,560.00 | 3,120.00 | 3,120.00 | 3,120.00 | 3,120.00 | 3,120.00 |
| Total Costs: | 37,560.00 | 3,120.00 | 3,120.00 | 3,120.00 | 3,120.00 | 3,120.00 |
| Benefits: | ||||||
| Eliminate overtime | 3,510.00 | 7,020.00 | 7,020.00 | 7,020.00 | 7,020.00 | 7,020.00 |
| Eliminate additional position | 15,600.00 | 31,200.00 | 31,200.00 | 31,200.00 | 31,200.00 | 31,200.00 |
| Eliminate daily errors | 1,560.00 | 3,120.00 | 3,120.00 | 3,120.00 | 3,120.00 | 3,120.00 |
| Total Benefits: | 20,670.00 | 41340.00 | 41340.00 | 41340.00 | 41340.00 | 41340.00 |
| Cash Flow | -16,890.00 | 38,220.00 | 38,220.00 | 38,220.00 | 38,220.00 | 38,220.00 |
| ROI = (Total Benefits - Total Costs) / Total Costs | 3.25 | |||||
| NPV | $116,358.06 | |||||
| Data For Plan B: Purchase Vertical Software Package | ||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Costs: | ||||||
| Purchase price for vendor package | 4,000.00 | 4,000.00 | 4,000.00 | |||
| Tech support contract | 600 | 600 | 600 | 600 | 600 | |
| Consultant time to install, configure, and test | 5,600.00 | |||||
| Hardware | 12,500.00 | |||||
| Consultant training time | 4,200.00 | |||||
| Office staff maintenance, backup and updating | 1,560.00 | 3,120.00 | 3,120.00 | 3,120.00 | 3,120.00 | 3,120.00 |
| Total Costs: | 27,860.00 | 7,720.00 | 7,720.00 | 3720 | 3720 | 3720 |
| Benefits: | ||||||
| Eliminate overtime | 3,510.00 | 7,020.00 | 7,020.00 | 7,020.00 | 7,020.00 | 7,020.00 |
| Eliminate additional position | 15,600.00 | 31,200.00 | 31,200.00 | 31,200.00 | 31,200.00 | 31,200.00 |
| Eliminate daily errors | 1,560.00 | 3,120.00 | 3,120.00 | 3,120.00 | 3,120.00 | 3,120.00 |
| Total Benefits: | 20,670.00 | 41,340.00 | 41,340.00 | 41,340.00 | 41,340.00 | 41,340.00 |
| Cash Flow | -7,190.00 | 33,620.00 | 33,620.00 | 37,620.00 | 37,620.00 | 37,620.00 |
| ROI = (Total Benefits - Total Costs) / Total Costs | 3.15 | |||||
| NPV | $116,797.50 |
