System Development Approach

profilexoon
book1.xlsx
Home>Human Resource Management homework help>System Development Approach

Sheet1

PW comparison
MARR= 15%
plan A plan B
Years Investment Deosit returns Annual lease cost $ per year Investment Deosit returns Annual lease cost $ per year
1 $15000 $3500 $18000 $3100
2 $3500 $3100
3 $3500 $3100
4 $3500 $3100
5 $3500 $3100
6 $15000 $1000 $3500 $3100
7 $3500 $3100
8 $3500 $3100
9 $3500 $18000 $2000 $3100
10 $3500 $3100
11 $3500 $3100
12 $15000 $1000 $3500 $3100
13 $3500 $3100
14 $3500 $3100
15 $3500 $3100
16 $3500 $3100
17 $3500 $3100
18 $1000 $3500 $2000 $3100
PW 18 years
PwA= -15,000 - 15,000(P/F, 15%, 6) + 1,000(P/F, 15%, 6)
= -15,000(P/F, 15%, 12) + 1,000(P/F, 15%, 12) + 1,000(P/F, 15%, 18)
-3,500(P/A, 15%, 18)
= $-45,036
PwB= -18,000 - 18,000(P/F,15%,9) + 2,000(P/F,15%,9) + 2,000(P/F,15%,18)
-3,100(P/A,15%,18)
= $-41,384

Sheet2

MARR= 15%
plan A plan B
Years Investment Deosit returns Annual lease cost $ per year Investment Deosit returns Annual lease cost $ per year
1 $15000 $3500 $18000 $3100
2 $3500 $3100
3 $3500 $3100
4 $3500 $3100
5 $3500 $3100
6 $15000 $1000 $3500 $3100
7 $3500 $3100
8 $3500 $3100
9 $3500 $18000 $2000 $3100
10 $3500 $3100
11 $3500 $3100
12 $15000 $1000 $3500 $3100
13 $3500 $3100
14 $3500 $3100
15 $3500 $3100
16 $3500 $3100
17 $3500 $3100
18 $1000 $3500 $2000 $3100
PW comparison for 6 years
      For a 6-year study period no cycle repeats are necessary. The PW analysis is
PwA= -15,000 – 3,500(P/A,15%,6) + 1,000(P/F,15%,6)
= $ -27,813.36
PwB= -18,000 – 3,100(P/A,15%,6) + 2,000(P/F,15%,6)
= $ -28,867.24

Sheet3

MARR= 15%
plan A plan B
Years Investment Deosit returns Annual lease cost $ per year Investment Deosit returns Annual lease cost $ per year
1 $15000 $3500 $18000 $3100
2 $3500 $3100
3 $3500 $3100
4 $3500 $3100
5 $3500 $3100
6 $15000 $1000 $3500 $3100
7 $3500 $3100
8 $3500 $3100
9 $3500 $18000 $2000 $3100
10 $3500 $3100
11 $3500 $3100
12 $15000 $1000 $3500 $3100
13 $3500 $3100
14 $3500 $3100
15 $3500 $3100
16 $3500 $3100
17 $3500 $3100
18 $1000 $3500 $2000 $3100
PWA comparison for 10 years
PwA= -15,000(P/F, 10%, 12) + 1,000(P/F, 10%, 12) + 1,000(P/F, 10%, 18) -3,500(P/A, 10%, 18)
= $ - 15000*0.3186+1000*0.3186+1000*0.1799-8.2014*3500
= $-32985.4
PwB= -18,000 - 18,000(P/F,10%,9) + 2,000(P/F,10%,9) + 2,000(P/F,10%,18) - 3,100(P/A, 10%, 18)
= $ -32119.14

Sheet4

MARR= 15%
plan A plan B
Years Investment Deosit returns Annual lease cost $ per year Investment Deosit returns Annual lease cost $ per year
1 $15000 $3500 $18000 $3100
2 $3500 $3100
3 $3500 $3100
4 $3500 $3100
5 $3500 $3100
6 $15000 $1000 $3500 $3100
7 $3500 $3100
8 $3500 $3100
9 $3500 $18000 $2000 $3100
10 $3500 $3100
11 $3500 $3100
12 $15000 $1000 $3500 $3100
13 $3500 $3100
14 $3500 $3100
15 $3500 $3100
16 $3500 $3100
17 $3500 $3100
18 $1000 $3500 $2000 $3100
PWA comparison for 6 years
PwA= -15,000 – 3,500(P/A,10%,6) + 1,000(P/F,10%,6) = $ -29678.8
PwB= -18,000 – 3,100(P/A,10%,6) + 2,000(P/F,10%,6) = $ -30372.32