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Instruction: Show Cash Flow Analysis in your detailed solution. Mark your final answer. A broadcast network wanted to procure an automation software that will automate
Instruction: Show Cash Flow Analysis in your detailed solution. Mark your final answer. A broadcast network wanted to procure an automation software that will automate the operation of its broadcast when the program is recorded or canned. The project engineer evaluated several proposals from suppliers and prepare a short list leaving two alternatives for the management to decide. Proposals from two suppliers are as follows: Supplier A Supplier B Initial Cost 25,000.00 25,000.00 Software Features Complete upon activation of 250.00 per activation of the license features License Renewal (Annually) 500.00 550.00 Annual Maintenance Fee 1,000.00 750.00 Software Upgrade 1,000.00 500.00 Savings every year 500.00 650.00 (comparable to non- automated operation) Training Fee Abroad (free 1,500.00 per engineer Free for 2 engineers + air fare + accommodations) 1,500.00 per additional Expected Life 5 years MARR 5 % 10 % Additional Information 1st 3 years - free license Payment start after year 1 renewal and maintenance Note: a) All costing in US Dollars. b) 5 engineers will go on training; around 250.00 per person for VISA processing (to be shouldered by the network) Assuming you are the project engineer, what will you choose to recommend? Why? Explain your economic analysis with respect to your decision. 10 years
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