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You are trying two decide between two UI designed. User interface design A cost $80,000. User interface design B cost $275,000 (extensive usability testing is
You are trying two decide between two UI designed. User interface design A cost $80,000. User interface design B cost $275,000 (extensive usability testing is planned). User interface B is expected to save each user 10 minutes a day. Each user's time is worth $20 hour. There are 60 users. The system is expected to be in production for 5 years. Which UI is the better value? (Assume a 6% interest rate and 48 work-weeks in a year.) Assume you want to calculate the present value of both options. Option A is already in present value, so no work is needed. Which of the following formulas can be used to convert the cost of option B into preset value (note, cost equals money spent - money saved) Name Symbol Cash Flow Diagram Single-Payment Compound-AmountF-PCF/P, i, n) n-l n Single-Payment P FP/F, i, n) Present-Worth Equal-Payment-Series A-FA/F,i,n) n-1 Sinking-Fund Equal-Payment-SeriesA- PA/P,i,n) n-1 n Capital-Recovery Equal-Payment-SeriesP AP/A, i,n) n-1 n Present-Worth Single-Payment Compound-Amount Single-Payment Present-Worth Equal payment series sinking fund Equal payment series capital recovery Equal payment series present worth
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