Read the case

Watch the video to the case

Open the Excel sheet provided

Enter the information from the case into the grey areas of the Excel sheet

Reflect on additional values the project might generate

Try to put a value to those values from point 5

Develop an argument for the board of directors to sell the project

Questions

Excel calculation sheet? (1 point) Send back the fully filled out excel calculation sheet with all the correct values added to the sheet. Access the Excel calculation sheetDownload Excel calculation sheet

What are NPV, IRR and Discounted payback period for the project (0.5 point)?

What other values does the project generate (1 point)

Write out your key arguments to the board of directors why this project should be done, or why it should not be done? (2.5 points)

Discount Rate Purchase Cost On-Boarding Labor Costs Current Time Cost (labor hours) New Time Cost (labor hours) Savings (labor hours) Hourly cost of labor hour Dollar Savings per user Users Dollar Savings from On-boarding Badge Processing Costs Toronto ID Processing Cost Reduction (\%) SFO Current Badge Processing Cost SFO Savings Per Badge Processed Users with new badges processed SFO Savings on Badge Processing Ongoing Identity Management Activity Costs Reduction in Labor Time Spent on Identity Management Hourly cost of labor Hours spent annually per user on Identity Management Dollar Savings per user Users Dollar Savings from Ongonig Identity Management Activity Costs Material Costs Savings Cost of new badges New badge purchases avoided through purchase of SAFE Total cost savings from reduced new badge purchases Incremental badges made unnecessary Percentage of badges lost each year Badge losses avoided Cost of lost badge Lost badge savings Record-Keeping Accuracy Savings Labor Hours spent each month on error detection Hourly cost of labor hour Reduction in labor hours spent on detection Savings in monthly labor hours Annual labor hour savings Value of labor savings Increased Compliance Savings Likelihood of a compliance violation without SAFE Likelihood of a compliance violation with SAFE Change in likelihood of a compliance violation Cost of a compliance valuation Value of compliance savings Compatibility Cost Savings Savings from avoiding rip-and-replace implementation Total Cash Outflows for Purchase Total Savings from Purchase Net Cash Flow from Purchase Discounted Cash Flow from purchase IRR from Purchase NPV of Purchase