Management Chapter 14 Homework Services Inhouse Trainer Autocad Training Hours user Inhouse

subject Type Homework Help
subject Pages 3
subject Words 171
subject Authors Kenneth C. Laudon

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MIS13 Chapter 14 Solution File
Year 0 1 2 3 4 5
2012 2013 2014 2015 2016 2017
Costs
Quantity
Cost/Unit
Routers w/firewall 2 $500.00 $1,000.00 $100.00 $100.00 $100.00 $100.00 $100.00
Switches 2 $700.00 $1,400.00 $100.00 $100.00 $100.00 $100.00 $100.00
Telephone connection costs $5,000.00 $5,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00 $1,000.00
Subtotal $10,100.00 $1,800.00 $1,800.00 $1,800.00 $1,800.00 $1,800.00
Software Licenses
Total Costs by Year $450,050.00 $128,300.00 $119,300.00 $110,300.00 $102,300.00 $105,300.00
Total Costs $1,015,550.00
Benefits
Reduced Labor Costs $250,000.00 $250,000.00 $250,000.00 $250,000.00 $250,000.00
Increased Gross Revenue $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00
Estimated Costs & Benefits - New AutoCAD Department
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Year 0 1 2 3 4 5
Payback Period = 1.5 years Cumulative Cash Flow
Initial Investment = 450,050 Year 0 -$450,050.00 -$450,050.00
Year 1 $271,700.00 -$178,350.00
Year 2 $280,700.00 $102,350.00
Year 3 $289,700.00 $392,050.00
Year 4 $297,700.00 $689,750.00
Year 5 $294,700.00 $984,450.00

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