Tangible Benefit Worksheet

Customer Tracking System Project

Year1-5
A.Error Raduction
B.Cost Reduction on avoidance
C. Increased speed of Activity
D. Increased Felixibility
E. Improvement in Mgt planning
and Control
F. Others
Total Tangible Benefits

3,500.00
2,000.00
5,000.00
10,000.00
20,000.00
40,500.00

One-time Cost Worksheet

Customer Tracking System Project
Year 0
A. New Hardware
B. Development Cost
C. New (purchased) Software
1. Package App. Software
2. Others
D. Site Preparation
E. Others

Total One-time Cost

25,000.00
20,000.00
4,000.00
3,000.00

52,000.00

Recurring Cost Worksheet

Year1-5
A. Application Software
Maintenance
B. Incremental Data Storage
Required:
20 MB x $50
(estimated cost/MB = $50
C. Incremental communication
(lines, messages)
E. Supplies
F. Other

30,000.00

2,000.00
3,000.00
1,000.00

Total Recurring Cost

36,000.00

Present-Value of Benefit
Customer Tracking System Project
Year 0

Year 1

Net Economic Benefit

Discount Rate (12%)
Present Value of Benefits

$0
1
$0

NPV of all Benefits

$0

50,000.00
0.8929
$44,645
$44,645

Year 2
50,000.00
0.7972
$39,860
$39,860

One-time Cost ( $42,500)

Recurring Cost
D.Rate (12%)

NPV of all Costs

Overall Net Present Value

0
1

($28,500.00)
0.8929
($25,447.65)

($28,500.00)
0.7972
($22,720.20)

(42,500.00)

(67,947.65)

(90,667.85)

Year 3
50,000.00
0.7118
$35,590
$35,590

Year 4
50,000.00
0.635
$31,750
$31,750

Year 5
50,000.00
0.5674
$28,370
$28,370

($28,500.00)
0.7118
($20,286.30)

($28,500.00)
0.635
($18,097.50)

($28,500.00)
0.5674
($16,170.90)

(110,954.15)

(129,051.65)

(145,222.55)

Total

$180,215 A

($102,722.55) B

$282,937.55

A-B