| Long Engineering Company - Vendor Proposal Analysis |
| Proposal Data |
| Increased sales | | | 400,000 | | Staff assistants | | | 2 |
| Discount Rate | | | 20% | | Engineers | | | 5 |
| Hardware Maintenance | | | 15% | | Training for Assistants (Yes/No) | | | yes |
| Software Maintenance | | | 15% | | Data Conversion | | | 15,000 |
| Gross Margin | | | 40% | | Cost of Training | | | 2,500 |
| Weeks per Year | | | 52 | | Training weeks | | | 1 |
| Assistant Salary | | | 60,000 | | Initial Training for Staff (weeks) | | | 0 |
| Engineer Salary | | | 100,000 | | Initial Training for Engineers (weeks) | | | 0 |
| NPV | | | 257,605 |
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
| Initial Costs |
| Hardware | (150,000) |
| Software | (175,000) |
| Data Conversion | (15,000) |
| People, Supervisor | - 0 |
| Training Costs | - 0 |
| Recurring Costs |
| Hardware Maintenance | | (22,500) | (22,500) | (22,500) | (22,500) | (22,500) |
| Software Maintenance | | (26,250) | (26,250) | (26,250) | (26,250) | (26,250) |
| People, Supervisor | | (20,000) | (20,000) | (20,000) | (20,000) | (20,000) |
| Training | | (29,423) | (29,423) | (29,423) | (29,423) | (29,423) |
| Total Costs | (340,000) | (98,173) | (98,173) | (98,173) | (98,173) | (98,173) |
| Initial Benefits |
| Recurring Benefits |
| Increase Profit | | 160,000 | 160,000 | 160,000 | 160,000 | 160,000 |
| Wage Saving | | 120,000 | 120,000 | 120,000 | 120,000 | 120,000 |
| Phone Bill Saving | | 18,000 | 18,000 | 18,000 | 18,000 | 18,000 |
| Total Benefits | - 0 | 298,000 | 298,000 | 298,000 | 298,000 | 298,000 |
| Net Cash Flow | (340,000) | 199,827 | 199,827 | 199,827 | 199,827 | 199,827 |
| NPV | 257,605 | 166,522 | 138,769 | 115,641 | 96,367 | 80,306 |
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worksheet_for_cis410_individual_assignment21.xls
