|
Estimated
Costs For Inventory Database Server with required Network Interfaces :
DEVELOPMENT COST :
Personnel:
|
1
|
System
Analyst(260 hrs,,$50/hr)
|
$
13000
|
|
1
|
Programmer
(120hrs, $40/hr)
|
$
4800
|
|
1
|
System
Designer (150 hrs, $45/hr)
|
$
6750
|
|
1
|
Database
Specialist ( 165 hrs, $50/hr)
|
$
8250
|
New Hardware & Software :
|
1
|
Database
Server, MS Access Compatible
|
$
8400
|
|
1
|
Server
Software (OS, and other packages)
|
$ 1200
|
|
8
|
Network
client terminals
|
$
12000
|
|
8
|
Network
client software
|
$
1040
|
|
|
Networking
equipments
|
$
1500
|
|
Total
Development Cost :
|
$
56940
|
Projected Annual
Operating Cost :
|
1
|
System
Administrator (20hrs/week, $20/hr)
|
$
19200
|
|
1
|
Database
Analyst (100 hrs/yr, $25/hr)
|
$
2500
|
|
1
|
Maintanance
Agreement for server and other softwares
|
$
800
|
|
|
Other
maintanance expenses
|
$
500
|
| Total
Projected Annual Cost : |
$
23000 |
|
Cash
Flow Description
|
Year
0
|
Year
1
|
Year
2
|
Year
3
|
Year
4
|
Year
5
|
Year
6
|
|
|
|
|
|
|
|
|
|
|
Development
Costs
|
$56,940
|
|
|
|
|
|
|
|
Operation
& Maintenance Cost
|
|
23,000
|
25,000
|
27,000
|
29,000
|
30,000
|
32,000
|
|
Discount
Factors For 8%
|
1
|
0.926
|
0.857
|
0.794
|
0.735
|
0.681
|
0.63
|
|
Time-Adjusted
Costs (Adjusted To
|
-56,940
|
21,298
|
21425
|
21,438
|
21,315
|
20,430
|
20,160
|
|
Present
Value)
|
|
|
|
|
|
|
|
|
Cumulative
Time Adjusted Costs
|
-56,940
|
-78,238
|
-99,688
|
-1,21,126
|
-1,42,441
|
-1,62,871
|
-1,83,031
|
|
Over
Life-Time)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefits
Derived From Opeartion
|
0
|
30,000
|
45,000
|
75,000
|
90,000
|
1,25,000
|
1,50,000
|
|
Of
New System
|
|
|
|
|
|
|
|
|
Discount
Factors For 8%
|
1
|
0.926
|
0.857
|
0.794
|
0.735
|
0.681
|
0.63
|
|
Time-Adjusted
Costs (Current Of
|
0
|
27,780
|
38,565
|
59,550
|
66,150
|
85,125
|
94,500
|
|
Present-Value)
|
|
|
|
|
|
|
|
|
Cumulative
Time Adjusted Benefits
|
0
|
27,780
|
66,345
|
1,25,895
|
1,92,045
|
2,77,170
|
3,71,670
|
|
Over
Life-Time
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative
Lifetime Life-Time
|
-56,940
|
-50,458
|
-33,343
|
4,769
|
49,604
|
1,14,299
|
1,88,639
|
|
Adjusted
Costs+Benefits:
|
|
|
|
|
|
|
|
Accordingly
from above chart, it can be inferred that the payback period is 3 year
FEASIBILITY ANALYSIS MATRIX:
|
Feasibility
Criteria
|
Wt.
|
MS
Access based
Server
|
Oracle
based
Server
|
|
Operational
Feasibility :
|
30%
|
Fully
support user requirements of all classes of users.
User
friendly
Score
: 70
|
Functionally
more effective and interactive.
User
friendly
Score
: 80
|
|
Technical
Feasibility
:
|
40%
|
Matured
and proven solution for simple small scale database requirements,
Not
workable under heavy load, and expanded functions.
Not
required to hire trained specialist for database management. Technical
specialists available easily and cheaply.
Score
: 80
|
Easily
expandable to large scale database solutions.
Require
SQL server. Front end integration not quite simple.
Require
trained specialists for modifications or integration requirements.
Score
: 70
|
|
Economic
Feasibility:
Cost
to Develop:
Pay
back Period :
|
30%
|
Approximately
$ 60,000
Appx.
3 years
Score
: 90
|
Approximately
$ 1,00,000
Appx.
4 years
Score
: 60
|
|
Ranking
|
100%
|
80
|
70
|
|
