Preliminary cost bene?t analysis for client-server system

Assignment Help Operation Management

Reference no: EM132211277

Martin is working to develop a preliminary cost bene?t analysis for a new client-server system. He has identi?ed a number of cost factors and values for the new system, summarized in the following tables:

Development Costs—Personnel

2 Systems Analysts 400 hours/ea @ $50/hour

4 Programmer Analysts 250 hours/ ea @ SSS/hour

1 GUI Designer 200 hours/ea @ S40/hour

1 Telecommunications Specialist 50 hours/ea @ $50/h0ur

1 System Architect 100 hours} ea @ 850! hour

1 Database Specialist 15 hours! ea @ 345fhour

1 System Librarian 250 hours/ea @ $15fl10ur

Development Costs—Training

4 Oracle training registration $3500! student

Development Costs—wNew Hardware and Software

1 Development server $18,700

1 Server software (OS, misc.) $1500

1 DBMS server software $7500

7 DBMS client software $95thf client

Annual Operating Costs—Personnel

2 Programmer Analysts 125 hoursfea @ $3Sz’hour

1 System Librarian 20 hours;r ea @ $15K hour

Annual Operating Costs—Hardware, Software, and Misc.

1 Maintenance agreement for server $995

1 Maintenance agreement for server $525

DBMS software

Preprinted forms 15,000fyear @ $.22lforrr1

The bene?ts of the new system are expected to come from two sources: increased sales and lower inventory levels.

Sales are expected to increase by $30,000 in the ?rst year of the system’s operation and will grow at a rate of 10% each year thereafter. Savings from lower inventory levels are expected to be $15,000 per year for each year of the project’s life.

Using a format similar to the spreadsheets in this chapter, develop a spreadsheet that summarizes this project’s cash ?ow, assuming a 4—year useful life after the project is developed. Compute the present value of the cash ?ows, using an interest rate of

“What is the NPV for this project? What is the ROI for this project? What is the breakeven point? Should this project be accepted by the approval committee?

Reference no: EM132211277

Questions Cloud

Write a program that prompts the user for the two legs : Write a program that prompts the user for the two legs of a right triangle and makes use of the pow and sqrt functions.

Find and print all of the prime numbers between 3 and k : Write a program that reads in an integer that is greater than 2 (let's call it k) and finds and prints all of the prime numbers between 3 and k.

Use the holistic marketing framework : Discuss in detail how an organisation such as Coca-Cola could use the holistic marketing framework to grow their market share and increase customer satisfaction

How christian ethics would approach a values-based issue : Write an essay (600 - 1000 words) that compares how Christian ethics and an ethical theory of your choice would approach a values-based issue.

Preliminary cost bene?t analysis for client-server system : Martin is working to develop a preliminary cost bene?t analysis for a new client-server system.

Discuss extra-dimensional communication within the event : Discuss extra-dimensional communication within this event (for example, presence/absence/how it could be attained or improved for future communication).

Write a program that reads in numbers from the user : Your program should be capable of tracking/calculating the minimum, maximum, total sum, and average of the numbers entered.

Write a program that reads in the users name : Write a program that reads in the user's name (e.g. "Bob") and then prints out "HI" and then their name (e.g. "Hi Bob!").

Psychographic segmentation to divide its market : United Airlines has used psychographic segmentation to divide its market. How successful was the psychographic segmentation strategy.

User Account

All Pages