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The Numbers Initial Yr1 Yr2 Yr3 Scenario 1 Annual Benefits Direct Indirect Total Benefits per period 26,000 2,279,729 2,305,729 26,000 2,279.729 2,305,729 26,000 2,279,729 2,305,729

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The Numbers Initial Yr1 Yr2 Yr3 Scenario 1 Annual Benefits Direct Indirect Total Benefits per period 26,000 2,279,729 2,305,729 26,000 2,279.729 2,305,729 26,000 2,279,729 2,305,729 Yr1 Yr2 Yr3 Depreciation Schedule Software Hardware Total Depreciation per period Acquisition 200,000 24,000 224,000 40,000 5,000 45,000 40,000 5,000 45,000 40,000 5,000 45,000 Initial Yr1 Yr2 Yr3 30,000 5,000 30,000 5,000 30,000 5,000 Expensed Costs Software Hardware Consulting Personnel Training Other Total Costs per period 45,000 64,000 20,981 100,000 100,000 100,000 129,981 135,000 135,000 135,000 Assumptions: 15% discount rate Case Questions 1. Calculate the following: a. Annual ROI b. Total Cost of ownership C. Average annual cost of ownership d. Net present value in year 3 e. Payback period

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