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Year 0 Year 1 Year 2 Year 3 Year 4 Year 5: Tangible Benefit Worksheet | PDF | Net Present Value | Discounted Cash Flow
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Year 0 Year 1 Year 2 Year 3 Year 4 Year 5: Tangible Benefit Worksheet

The document presents cost-benefit analyses for a proposed IT system implementation. It outlines one-time costs of $6,850 for hardware and software. It estimates annual tangible benefits increasing from $22,000 in year 1 to $23,000 in years 2-5, for a total present value of $82,015. Recurring annual costs are estimated to be $10,000 each year. The overall net present value is calculated to be $39,118, indicating the project would provide positive economic returns.

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110 views4 pages

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5: Tangible Benefit Worksheet

The document presents cost-benefit analyses for a proposed IT system implementation. It outlines one-time costs of $6,850 for hardware and software. It estimates annual tangible benefits increasing from $22,000 in year 1 to $23,000 in years 2-5, for a total present value of $82,015. Recurring annual costs are estimated to be $10,000 each year. The overall net present value is calculated to be $39,118, indicating the project would provide positive economic returns.

Uploaded by

Mikel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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One Time Cost Worksheet

Quantity Hardware Cost Software Cost


Sublime Text 1,000.00
QR Code Generator 250.00
Sticky Paper 100.00
My SQL Workbench 1,000.00
Eclipse ( Android Java ) 500.00
Data Analysts 1,000.00
Documents 1,000.00
System Analysts 1,000.00
Program 1,000.00
6,850.00
TOTAL 6,850.00

Tangible Benefit Worksheet Year 0 Year 1 Year 2 Year 3 Year 4 Year 5


QR Code damage 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 25,000.00
Management of implemented system 5,000.00 6,000.00 6,000.00 6,000.00 6,000.00 29,000.00
Increase Flexibility 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 25,000.00
Optimize speed result of informations 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 25,000.00

Reduce Staffing cost (Incl. Overtime) 2,000.00 2,000.00 2,000.00 2,000.00 2,000.00 10,000.00

Total 22,000.00 23,000.00 23,000.00 23,000.00 23,000.00 114,000.00

Recurring Cost Worksheet


Hardware Maintenance 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 5,000.00
Application Software Maintenance 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 5,000.00
Internet speed need 5mbps 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 25,000.00
Supplies 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 15,000.00
Zero Web Hosting - - - - - -

Total 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 50,000.00


Present Value 12% tax
0.89286 0.79719 0.71178 0.63552 0.56743
12%j 12% 12% 12% 12%
m(yearly)
1 2 3 4 5
1t 2 3 4 5

Economic Feasibility Analysis


Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Economic Benefit 0 22,000.00 23,000.00 23,000.00 23,000.00 23,000.00
Discount Rate 12% 1 0.8928 0.7972 0.7118 0.6355 0.5674
Present Value of Benefit 0 19,641.60 18,335.60 16,371.40 14,616.50 13,050.20
Net Present Value of all Benefits 0 19,641.60 37,977.20 54,348.60 68,965.10 82,015.30 82,015.30

One Time Cost 6,850.00 Year 1 Year 2 Year 3 Year 4 Year 5


Recurring Costs 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Discount Rate (12%) 0.8928 0.7972 0.7118 0.6355 0.5674
Present Value Recurring Cost 8,928.00 7,972.00 7,118.00 6,355.00 5,674.00
Net Present Value of all Costs 6,850.00 15,778.00 23,750.00 30,868.00 37,223.00 42,897.00 42,897.00
OverAll Net Present Value 39,118.30
OverAll Return of Investment 0.43 0.66 0.77 0.83 0.87

Break Even Analysis

Yearly Net Present Value Cash Flow 6,850.00 3,863.60 14,227.20 23,480.60 31,742.10 39,118.30
OverAll Net Present Cash Flow 6,850.00 10,713.60 24,940.80 48,421.40 80,163.50 119,281.80

Breakeven Analysis
140,000.00
120,000.00
100,000.00
80,000.00
60,000.00
40,000.00
20,000.00
-
1 2 3 4 5 6
Yea rly Net Pres ent Val ue Ca s h Fl ow OverAl l Net Pres ent Ca s h Fl ow
450
375 100
320 185
550 50
30 12
130 15
20 362
45
6
10
1936
1936
362
2298 TOTAL

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