ms7 template

Milestone #7-Systems Analysis - Financial Analysis Purpose Universal Wellness Group (UWG) needs to perform a financial analysis of the system. A systems analyst needs to know how to calculate costs and benefits when conducting the analysis of system proposals, evaluating IT projects and making recommendations to management. In this milestone you will complete a financial analysis of the costs involved for a variety of systems implementation approaches. Background You estimate that by working full-time you could complete the project in about 12 weeks. Your consulting rate, which UWG agreed to, is $35 per hour. If you design the new system as a database application, you can expect to spend about $2,500 for a networked commercial package. After the system is operational and the staff is trained, UWG should be able to handle routine maintenance tasks without your assistance. As an alternative to in-house development, a vertical software package is available for about$12,000. The vendor offers a lease-purchase package requiring a$4,000 down payment, followed by two annual installments of $4,000 each. If UWG buys the package it would take you about four weeks to install, configure, and test it, working full-time. The vendor provides free support during the first year of operation, but then UWG must sign a technical support agreement at an annual cost of $600. Although the package contains many of the features that UWG wants, most of the reports are pre-designed and it would be difficult to modify their layouts. No matter which approach is selected, UWG probably will need you to provide about 10 hours of initial training and support each week for the first three months of operation. After the new system is operational, it will need routine maintenance, file backups, and updating. These tasks will require about four hours per week and can be performed by a clinic staff member. In both cases, the necessary hardware and network installation will cost about $12,500. In your view, the useful life of the system will be about five years, including the year in which the system becomes operational. Tasks 1. Provide an overview of the proposed system, including costs and benefits, with an explanation of the various cost-benefit types and categories. Complete the MS7-Cost Benefit Table Template. 2. Develop an economic feasibility analysis. Calculate the ROI and net present value (assume a discount rate of 109% lse the MS7-Financial Template. 3. Provide a brief explanation of the various alternative development strategies that should be investigated if development continues, including in-house development and any other possible strategies that you have considered. Format Task 1) Description of Cost or Benefit Direct, operational, variable, positive benefit Financial Impact Annual savings of 6 hours $15 hourly rate 52 weeks 1.5 overtime factor-$7,020 (six months of impact, or $3,510, will be avatlable in Year 0) Cost or Benefit Eliminate three hours of overtime each week at $15 per hour Task 2) Complete by using the Microsoft Excel MS7-Financial Template. Task 3) Development Strategy Overview 10 % 1 Discount Rate Data For Plan A: In-House Development Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Costs: Consultant time to develop system 6 7 Purchase necessary software platform Hardware Consultant training time 10 Office staff maintenance, backup and updating 11 Total Costs: Benefits: 12 13 Eliminate overtime 14 Eliminate additional position 15 Eliminate daily errors 16 Total Benefits: 17 Cash Flow 18 ROI-(Total Benefits-Total Costs)/Total Costs ??? $0.00 19 NPV 20 Data For Plan B: Purchase Vertical Software Package 21 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 22 Costs: 23 Purchase price for vendor package 24 Tech support contract 25 Consultant time to install, configure, and test 26 Hardware 27 Consultant training time 28 Office staff maintenance, backup and updating Total Costs 29 30 Benefits: 31 Eliminate overtime 32 Eliminate additional position 33 Eliminate daily errors 34 Total Benefits: 35 Cash Flow 36 ROI (Total Benefits-Total Costs)/Total Costs 37 NPV S0.00 38 39 CostBenefitSummary Cost-Benefit Nmtun Milestone #7-Systems Analysis - Financial Analysis Purpose Universal Wellness Group (UWG) needs to perform a financial analysis of the system. A systems analyst needs to know how to calculate costs and benefits when conducting the analysis of system proposals, evaluating IT projects and making recommendations to management. In this milestone you will complete a financial analysis of the costs involved for a variety of systems implementation approaches. Background You estimate that by working full-time you could complete the project in about 12 weeks. Your consulting rate, which UWG agreed to, is $35 per hour. If you design the new system as a database application, you can expect to spend about $2,500 for a networked commercial package. After the system is operational and the staff is trained, UWG should be able to handle routine maintenance tasks without your assistance. As an alternative to in-house development, a vertical software package is available for about$12,000. The vendor offers a lease-purchase package requiring a$4,000 down payment, followed by two annual installments of $4,000 each. If UWG buys the package it would take you about four weeks to install, configure, and test it, working full-time. The vendor provides free support during the first year of operation, but then UWG must sign a technical support agreement at an annual cost of $600. Although the package contains many of the features that UWG wants, most of the reports are pre-designed and it would be difficult to modify their layouts. No matter which approach is selected, UWG probably will need you to provide about 10 hours of initial training and support each week for the first three months of operation. After the new system is operational, it will need routine maintenance, file backups, and updating. These tasks will require about four hours per week and can be performed by a clinic staff member. In both cases, the necessary hardware and network installation will cost about $12,500. In your view, the useful life of the system will be about five years, including the year in which the system becomes operational. Tasks 1. Provide an overview of the proposed system, including costs and benefits, with an explanation of the various cost-benefit types and categories. Complete the MS7-Cost Benefit Table Template. 2. Develop an economic feasibility analysis. Calculate the ROI and net present value (assume a discount rate of 109% lse the MS7-Financial Template. 3. Provide a brief explanation of the various alternative development strategies that should be investigated if development continues, including in-house development and any other possible strategies that you have considered. Format Task 1) Description of Cost or Benefit Direct, operational, variable, positive benefit Financial Impact Annual savings of 6 hours $15 hourly rate 52 weeks 1.5 overtime factor-$7,020 (six months of impact, or $3,510, will be avatlable in Year 0) Cost or Benefit Eliminate three hours of overtime each week at $15 per hour Task 2) Complete by using the Microsoft Excel MS7-Financial Template. Task 3) Development Strategy Overview 10 % 1 Discount Rate Data For Plan A: In-House Development Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Costs: Consultant time to develop system 6 7 Purchase necessary software platform Hardware Consultant training time 10 Office staff maintenance, backup and updating 11 Total Costs: Benefits: 12 13 Eliminate overtime 14 Eliminate additional position 15 Eliminate daily errors 16 Total Benefits: 17 Cash Flow 18 ROI-(Total Benefits-Total Costs)/Total Costs ??? $0.00 19 NPV 20 Data For Plan B: Purchase Vertical Software Package 21 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 22 Costs: 23 Purchase price for vendor package 24 Tech support contract 25 Consultant time to install, configure, and test 26 Hardware 27 Consultant training time 28 Office staff maintenance, backup and updating Total Costs 29 30 Benefits: 31 Eliminate overtime 32 Eliminate additional position 33 Eliminate daily errors 34 Total Benefits: 35 Cash Flow 36 ROI (Total Benefits-Total Costs)/Total Costs 37 NPV S0.00 38 39 CostBenefitSummary Cost-Benefit Nmtun