Question
What would be a good financial analysis for the following project? Discount rate is 7% - The School of Engineering Computer and Mathematical Sciences (SECMS)
What would be a good financial analysis for the following project? Discount rate is 7% -
The School of Engineering Computer and Mathematical Sciences (SECMS) has allocated NZD200,000 to undertake this project and believes it will return to the school NZD600,000 per year for the next three years in recruiter licences. For your assignment, you can assume that, through an initial preliminary investigation that the project is expected to start on 19 July 2022 and finish (including the completion of all deliverables) on 29 August 2022 . The new platform should be up and running live by 21 February 2023 , so it can be available to the school's students at the beginning of their semester. The usage fee for the software is expected to be NZD5.00 per user per year. The estimate is that 250 students will sign up and use the software each semester in the academic year until 2025. In addition, it is expected that the monthly server charge per student will be NZD4 for 2022. However, the school expects an increase in the server charge by 10\% every year until 2025. The existing infrastructure is sufficient, and new hardware will not be required. Your stream's Teaching Assistant (TA) will be the Acting Sponsor/Client for your project. As part of your business case development ask your Teaching Assistant (TA) for the discount rate for your project. You may need to look at competing tools on the market to determine crucial features and key capabilities that should be included in the requirements. The school expects a high-quality system and related documentation. Hence, you must identify and clearly state the quality goals in the scope statement document.
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