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A new company will sell medical supplies to hospitals and healthcare centers and will set up three offices in different cities in Indiana. Employees are

A new company will sell medical supplies to hospitals and healthcare centers and will set up three offices in different cities in Indiana.

Employees are expected to work full-time at each office, which will be equipped with desktop computers, screens for video meetings and printers. (All these devices can connect to Wi-Fi.) All transactions (sales, shipping, human resources, accounting, finance, etc.) will be stored in cloud-based systems. Build a model in Excel to estimate the total cost of networks and Internet access for the next 3 years. The following data is provided:

  • A business Internet connection of 1 Gbps has been quoted for $1,000 per month. (Note that this is the cost of one connection, and there are three offices in different locations.)
  • Each office building has 10 rooms including conference rooms, front offices, cubicles, etc. One Wi-Fi access point per room should be enough for networking needs. A business-grade Wi-Fi access point costs $300.
  • Consider an extra cost of $3,000 per office (3-year total) for cabling and installation of the Wi-Fi access points and other devices, including firewalls, and occasional maintenance such as the replacement of cables or access points.

Also, estimate the total cost of the cloud-based system for payroll processing. The cost to process payroll is $150 per month (flat) plus $12 per employee per month if the company has 1-20 employees, $11 per employee per month for 21-50 employees, and $10 per employee per month for 51 or more employees. (Only one plan is needed, regardless of the number of locations.) The company estimates that the total number of employees will start at 15 and grow 10% every month. (Make a model in which the company can change the estimates for the number of employees or unit fees and see the effects on the total cost.)

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