This is the detail of the physical design of the new system. Now that we have the models completed, it's time to implement. But first, we have to see if it's feasible. Your feasibility report should contain the following:

1. A clear specification of the proposed system. This is a list of the equipment, supplies, personnel, etc. needed to both build and operate the new system. This is a list of the tangible costs (mostly taken from the previous list) as well as the intangible costs. This is a list of the benefits - tangible and intangible - the system is expected to bring about. Use the descriptions of tangible and intangible costs and benefits from the NOMAS 05 case to be sure you are covering everything. Don't forget job changes (layoffs), new hires, a change in warehousing, POS systems, employee training, down time, etc.
2. Analyses of the costs and benefits (tangible and intangible) based on three simple techniques and formulas below. Put together some good analyses. You'll need to set up a spreadsheet to track the costs and benefits over time, and then use the techniques below for analysis. Use charts and graphs if you feel they are appropriate, but they are not necessary. Use a 5-year window when appropriate and the current 10-year t-bill rate.
   1. Payback Period = investment costs / annual cash flow
   2. Return on Investment = (investment gains - investment costs) / investment costs
   3. Net Present Value = (annual discounted cash flows) - investment costs