TOC

Table of Contents
One Time Costs
Recuring Costs
Recurring Benefits

One Time Costs

One Time Costs Dollar Amount
Software Licenses $500,500.00
Hardware $75,500.00
Network and Communication Upgrades $25,500.00
Training $25,500.00
Configuration and Implementation $1,750,500.00

Recurring Costs

Recuring Costs Dollar Amount
Software License Maintenance Fees $80,500.00
New IT Employees (2x 80,250) $160,500.00

Recurring Benefits

Recurring Benefits Dollar Amount
Increased Profit Due to Increase Sales $750,500.00
Reduced Inventory Holdings Costs $250,500.00
Reduction in Clerical Workforce (4x50,125) $200,500.00

Economic Feasibility

Discount Rate 0.14
Year
0 1 2 3 4 5 Totals
Benefits
Recurring Value of Benefits $1,201,500.00 $1,201,500.00 $1,201,500.00 $1,201,500.00 $1,201,500.00 $6,007,500.00
Present Value Factor 0.892857143 0.797193878 0.711780248 0.635518078 0.567426856
Present Value of Benefits
Net Present Value of All Benefits
Cost
One-Time Costs
Recurring Costs
Present Value Factor
Present Value of the Recurring Costs
Net Present Value of All Costs
Overall Net Present Value
Cash Flow Analysis
Yearly NPV Cash Flow
Overall NPV Cash Flow
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