Computer information System Analysis and Design

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Project1.xlsx
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Sheet1

Cost-Benefit Analysis
2019 2020 2021 2022 2023 Total
Increased Business $ 2,000 $ 2,120 $ 2,247 $ 2,382 $ 2,525
Insurance Savings $ 200 $ 200 $ 200 $ 200 $ 200
Storage savings $ 8,000 $ 8,000 $ 8,000 $ 8,000 $ 8,000
Staff Reduction (1 less person) $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000
Faster Processing $ 1,100 $ 1,100 $ 1,100 $ 1,100 $ 1,100
TOTAL BENEFITS: $ 12,300 $ 12,420 $ 12,547 $ 12,682 $ 12,825
PV OF BENEFITS: $ 11,827 $ 11,483 $ 11,154 $ 10,841 $ 10,541
PV OF ALL BENEFITS: $ 11,827 $ 23,310 $ 34,464 $ 45,305 $ 55,846 $ 55,846
1 Server $ 3,000.00 $ - 0 $ - 0 $ - 0 $ - 0
2 New Workstation @ 1,250 $ 2,500.00 $ - 0 $ - 0 $ - 0 $ - 0
1 Printer / Fax / Copier Machine $ 1,200.00 $ - 0 $ - 0 $ - 0 $ - 0
1 Server Software $ 300.00 $ - 0 $ - 0 $ - 0 $ - 0
2 Worstation Software @ 250 $ 500.00 $ - 0 $ - 0 $ - 0 $ - 0
Development Labor $ 9,000.00 $ - 0 $ - 0 $ - 0 $ - 0
Total Development Costs: $ 16,500.00 $ - 0 $ - 0 $ - 0 $ - 0
Hardware $ 950 $ 974 $ 998 $ 1,023 $ 1,049
Software $ 450 $ 461 $ 473 $ 485 $ 497
Operational Labor (maintenance) $ 1,500 $ 1,537 $ 1,576 $ 1,615 $ 1,656
Total Operational Costs: $ 2,900 $ 2,972 $ 3,047 $ 3,123 $ 3,201
Total Costs: $ 19,400 $ 2,972 $ 3,047 $ 3,123 $ 3,201
PV of Costs: $ 18,654 $ 2,748 $ 2,709 $ 2,670 $ 2,631
PV of All Costs: $ 18,654 $ 21,402 $ 24,111 $ 26,780 $ 29,411 $ 29,411
Total Project Benefits-Costs: $ (7,100) $ 9,448 $ 9,500 $ 9,559 $ 9,624
Yearly NPV: $ (6,827) $ 8,735 $ 8,446 $ 8,171 $ 7,910
Cumulative NPV: $ (6,827) $ 1,908 $ 10,354 $ 18,525 $ 26,435
Return on Investment: 89.88%
Break-Even Point: 1.78
Intangible Benefits: This service is currently provided by competitors improved customer satifaction.