Samantha Charleston identified relevant costs but didn't complete the analysis.
Complete the analysis and determine total savings (if any) each year and for the three-year period.
Make sure to use formulas and calculations in the cells to arrive at your answer.
	Process Checks As-Is	Automate Check Processing
Annual Cost (Savings):
Bank Charges of Processing Recurring Payments
Bank Charges of Processing other Electronic Payments
Savings in Salary Reductions
Savings in PC, IT support, other costs
Savings in postage costs
Annual Costs over Three Year Period:
Severance Payments for Staff Reduction
Total Savings over Three Year Period
Requirement 2: Determine two qualitative (nonfinancial) costs relating to the automation of the
electronic payments decision.
Requirement 3: Would you automate the check processing? Why or why not?

Quantitative Costs: Decrease in use of paper checks from 2006-2009 Savings from use of electronic payments - Low end Savings from use of electronic payments - high end Bank charges for electronic payments Time to process paper check Time to process electronic payment Time savings on recurring payments Table 3: Budgeted Costs Salaries Benefits load Rent and related Supplies PCs IT Support Postage Travel and Entertainment Corporate expenses Total Table 4: Summary of Checks Processed per Month Checks Recurring Percentage of total checks Business Parnters/Employees - Potential Electronic Payr Percentage of total checks All other checks Percentage of total checks Estimate of processing of current payments electronically Reduction in processing time from electronic payments Potential time savings from setting up recurring payments $ $ Labor Savings from Processing Payments: Current Employees processing payments Checks processed by employees Calculated current costs related to time to process payme $ Percentage of checks estimated to be processed electror Percentage of Staff Reductions of Accounts Payable Savings in PC, IT support, other costs Reduction in postage costs by moving to electronic paym Percentage of Severance from Accounts Payable 5% 20% 90% Accounts Payable $ 470,000 117,500 64,000 16,750 12,000 11,500 270,000 $ 0.125 per electronic payment 2 minutes 1.5 minutes 80% annually 11,500 8,000 981,250 8,000 monthly 16% 17,000 monthly 34% 25,000 50% 50% 25% 80% 10 600,000 annually 1.02 per check 50% 15% 1,775.00 per employee 50% direct proportion to reduction of checks 15% of maximum Accounts Payable coverage