Inhouse development option 2 3 4 5 6 -$ Total investments 19500 $6500 $6500 $6500 $6500 $6500 $6500 Total benifits 0.926 0.857 0.794 0.735 Discount factor 0.681 0.630 -$19500 $6019 $5570.50 $5161.00 $4777.50 $4426.50 $4095 Divide by discount factor to reach at PV Sum of all presnt values = -19500+6019+5570.50+5161+4777.50+4426.50+4095 = $10550 Bikeexpert Software package option Cost to purchase (1) -$7500 -$1000 Install and configure (2) Load existing data -$1500 (3) -$1500 Additional hardware cost (4) -$1500 -$1500 -$1500 -$1500 Annual Support fee for 5 years (5) Total benifits (6) Discount factor | $6500 | $6500 $6500 0.926 0.857 0.794 $6019 | $4285 | $3970 $6500 0.735 $3675 $6500 0.681 $3405 (1+2+3+4+5+6) (Discount Factor) | -11500 Sum of all presnt values = -11500+6019+4285+3970+3675+3405 = $9854