2 Part Question 1. Please give Benefit Register (Type, 1 time v/s recurring) for this case study. 2. Looking at the calculation that is provided, please give recommendation and rationale if the project is financially viable or not.

BENEFITS Conversion rate from credit to debit 3000000 2.52% 2.41% 1.78% 75600 72300 53400 Optimistic Most Likely Pessimistic 2.52 2.41 1.78 PERT Dist 2.32 Transaction costs credit card transaction cost 3.10% debit card transaction cost 0.40% Benefit of switch 2.70% Total customers 3,000,000 Transactions per customer 5.67 total volume of transactions 17,010,000 conversion from credit to debit 2.32% Potential debit transactions 394,632 average spend per customer $ 105.30 Average spend per transaction $ 18.57 Total spend of debit transactions $ 7,328,880.00 Benefit of switch per debit transaction 2.70% Benefit to company from the switch $ 197,879.76 Benefit to company after the switch $ 7,526,759.76Cost Analysis Sol Implementation cost and labour cost 2000000 license and other costs 300000 Capital expenditure 1545200 Total 3845200 Spend in FY1 (48%) 1845696 Spend in FY2 (52%) 1999504 Discount rate 12% Tax rate 30%Years 2024 2025 2026 2027 2028 2029 Benefits realization 0 0.25 0.5 1 1 1 Benefits $ 1,881,690 $ 3,763,380 $ 7,526,760 $ 7,526,760 $ 7,526,760 LESS: Cost (1,845,696) $ (1,999,504) Net benefit (1,845,696) $ (117,814) $ 3,763,380 $ 7,526,760 $ 7,526,760 $ 7,526,760 LESS: Tax S $ (1,129,014) $ (2,258,028) $ (2,258,028) $ (2,258,028) Free Cash Flow Total $1,845,696.00 -$117,814.06 $2,634,365.92 $5,268,731.83 $5,268,731.83 $5,268,731.83 Discount Factor 12% 0.89 0.80 0.71 0.64 0.57 0.51 PV S (1,648,022) $ (93,921) $ 1,875,142 $ 3,348,279 $ 2,989,478 $ 2,669,140 NPV S 9,140,095 IRR 97% DPI 4.57 ARR 95.30% Payback Period Balance at beginning Balance at end Year 1 0 -$1,845,696.00 Year 2 -$1,845,696.00 -$1,963,510.06 Year 3 -$1,963,510.06 $670,855.86 Payback Year |Year 4 $670,855.86 $5,939,587.69 Money Made in Payback Period 3.60 4th year $5,268,731.83 Remaining amount from 3rd year $3,174,344.14 Month we recovered in year 4 0.602487324Interac Debit Payment Assess Project Viability for Wishful Wave Wireless Inc.Project Premise . Encourage the Wireless and Internet Customers to pay using Debit and provide them with the same benefits as the Credit Card Customers in terms of points/cashback by tying up with Interac . . Additionally provide 5% discount on the bill if they set up a pre-authorized payment. This will arrest the Churn rate the company is currently having due to poor customer experience due to frequent errors in billing. . Provide enhanced payment security if they choose to pay using the debit. . Life cycle: . Project implemented over 18 Months ( Start in FY-2024) . Benefit Lifecycle: 5yrs . Benefits will commence post implementation: . No Benefits in FY-2024 . 25% in FY-2025 HUMBER . 50% envisaged in yr immediate after implementation WE ARE . 100% from thereafterBasic Information : Constant for Life Cycle . Total Customer Base: 3 Million . Credit Card transactions/ customer : 5.67 . Average Spend/ Customer today : $105.30 . Conversion Rate: . Best Case: 2.52% . Conservative Case: 1.78% . Most Likely: 2.41% . Use your own Probabilistic Distribution ( Triangular, PERT etc but lay it in assumption sheet) . Transaction Fees: . Credit Card Transaction Cost : 3.1% . Debit Card Transaction Cost : 0.4% HUMBER WE ARECost Information . Solution Implementation Cost: $2 Million . License and Other costs : 15% of the Labor cost . Capex : 77.26% . FY-2024 Spend : 48%; FY-2025: 52% . Depreciation Method: WDV over 5 yrs . Tax Rate: 30% . Cost of Capital: 12% HUMBER WE ARE