Please help! Now that we have isolated the necessary features for an in-house built system, we need figure out if it will be economically feasible
Please help!
Now that we have isolated the necessary features for an in-house built system, we need figure out if it will be economically feasible to build this software. Mae Roth has asked for the bottom-line numbers for this project. Not only do we need to tell her how much the system will cost to build, but she wants to know what the total cost of ownership would be if we use this system for the next 5 years. You will need give her the numbers in net present value. Since our IT team is unionized, their contract states that they will get a $3/hour raise each year for the next 5 years.
Assume that we will need 2 servers initially for this project. Also assume that we will have to replace these servers every two years.
In the spreadsheet that you create, show the initial build cost and the cost for years 2-5 of maintenance. Finally, give the NPV for the entire project.
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Costs for in-house development Standard Development Times As standard practice, use these guidelines (assume 8 hours of work per day). As standard practice, use these costs for all in-house development. Cost per hour (for first year) Database Development $ 60 Web developers $ 75 App developers $ 75 UX designers $ 60 Business Analyst $ 50 Trainers $ 50 Cybersecurity specialists $ 90 System Admin $ 70 Duration 5 days 10 days 2 days 2 days 1 day 1 day 1 day 1 day Database design Database build Design of a report (web or app) Design of data entry page (web or app) Design of static text page (web or app) Build of a report (web or app) Build of data entry page (web or app) Build of static text page (web or app) Connection to separate system or database (sys admin) Analysis work (both web and app combined) Training Cybersecurity work $ $ 8 days 20 days 5 days 10 days Equipment: Servers Routers $ $ 2,500 200 Expected Monthly Maintenance: Development (web or app) System Admin Training 2 days 3 days 1 day Costs for in-house development Standard Development Times As standard practice, use these guidelines (assume 8 hours of work per day). As standard practice, use these costs for all in-house development. Cost per hour (for first year) Database Development $ 60 Web developers $ 75 App developers $ 75 UX designers $ 60 Business Analyst $ 50 Trainers $ 50 Cybersecurity specialists $ 90 System Admin $ 70 Duration 5 days 10 days 2 days 2 days 1 day 1 day 1 day 1 day Database design Database build Design of a report (web or app) Design of data entry page (web or app) Design of static text page (web or app) Build of a report (web or app) Build of data entry page (web or app) Build of static text page (web or app) Connection to separate system or database (sys admin) Analysis work (both web and app combined) Training Cybersecurity work $ $ 8 days 20 days 5 days 10 days Equipment: Servers Routers $ $ 2,500 200 Expected Monthly Maintenance: Development (web or app) System Admin Training 2 days 3 days 1 day