As part of your course project, you are asked to research software for your accounting information system and complete a cost vs. benefit analysis using present value tables.

Part 1 - Software Research

Conduct research to find two standard packages that you feel may fit your company. For example, SAP is a one of the solutions that a company can utilize, to do everything from human resources, finance, and inventory.

You should use 2 credible sources, which may include journal articles from Academic Journals.

In a single document, provide a summary of the two software packages that you researched. Include the following information in your summary:

• Cost
• Availability
• Required Hardware
• Training and Support Package
• Transition Time
• Briefly explain the advantages and disadvantages of each of the software.
• In the summary, indicate the product that you feel is the best fit for your company and why.

Part 2 - Cost vs. Benefit Analysis Using Present Value Tables

Assume that you adopt a custom software package. Using present value tables, evaluate the cost vs. benefit of a system under the following scenario: The probable cost of the best package is estimated at $20 million to implement. While there are no benefits in the first year, you estimate the system will save the company a net of $4 million the second year after costs and $6 million for the next three years. Interest rate is 2%. Your cost vs. benefit analysis should indicate the total and yearly benefits and discounted costs. Will the project make money at the 2% interest rate?

This exercise involves a capital budgeting decision using the net present value method. This method considers the estimated net cash flows for a project's expected life.

You can use the following format for your analysis. Alternatively, you can list the years using a vertical format.

Year 1

Year 2

Year 3

Year 4

Year 5

Benefits

Discounted

Total Discounted

Value

Summarize your findings in an executive summary table with information for easy comparability.