Create a Financial Model vs per Supplier
3. Estimated costs Your IT team points out that implementation costs are calculated based on man hours of programming. In this sense, any delay in this process could increase the cost and, therefore, the profitability of the project. 4. Experiences of other customers 5. Assumptions - Regardless of the tool you choose, your IT team estimates that it will be necessary to migrate custody software to the cloud. This is expected to reduce technology costs by \\( \\$ 30,000 \\) per year. - Prior to making a decision, it was instructed to carry out the implementation study of both tools; That is, this study must be paid regardless of the decision made by the company. - Your IT team estimates that each tool could be implemented in about 12 months. - Your sales team estimates that with the purchase of SPACE. CSD could increase revenue by \1.5 per year. On the other hand, it estimates a growth of \0.7 per year if STAR is purchased. CSD. - The company uses a straight-line depreciation system and estimates a useful life of 10 years for each software. - The annual maintenance of each software is adjusted based on an expected inflation of \2. - It assumes a WACC of \10. - ISR of \25. Overview The Poyais Custody Center (\"Poyais (SD\") wants to replace its clearing and settlement system - FULCRUM. For more than 50 years, FULCRUM has served as a platform for registration, custody, settlement and clearing of those financial instruments listed on the Poyais Stock Exchange (\"Poyais Exchange\"). However, the increase in volumes and services has lagged FULCRUM's operational management eapacity relative to its international peers. About the company Poyais CSD is the only Custody Center in Poyais, a relatively small country with favorable economic prospects. Poyais CSD is a related company of Poyais Exchange, the only Poyais Stock Exchange. In this sense, all instruments traded on Poyais Exchange must be guarded and settled through Poyais CSD. Poyais CSD not only serves the local market, but also offers services through custody links with Panama, El Salvador. Guatemala, Nicaragua, Costa Rica and Ecuador. With a view to becoming more competitive, in 2020, Poyais Exchange changed its trading system to SPACE.2, one of the most prestigious trading platforms in the world. Experts mention that the reputational strength of SPACE. 2 has been a determining factor in the increase in the volume traded in the Poyais market. About the project Although. FULCRUM still has a useful life of 5 years, the Board of Directors (JD) of Poyais CSD has taken the decision to purchase a new custody software. After extensive analysis, the options were narrowed down to SPACE, the same software provider used by Poyais Exchange and STARLINK, a company with more than 50 years of experience in custody software development. Presentation to the \\( \\mathrm{DB} \\) Based on the above, and with the help of the Annexes, prepare a financial model that allows you to give a recommendation to the \\( \\mathrm{DB} \\) on the tool that should be implemented. This recommendation should be presented in a PowerPoint that defines and supports your decision concisely. It is important to mention that the JD has granted you a room courtesy of only 10 minutes to present your case. Points of interest - NPV or IRR of the project - 10-year P/L forecast - SWOT 1. Available suppliers 2. Poyais CSD
