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 users 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).

a) Single-Payment Compound-Amount.

b) Single-Payment Present-Worth.

c) Equal payment series sinking fund.

d) Equal payment series capital recovery.

e) Equal payment series present worth

Name Symbol Single-Payment Compound-Amount Single-Payment Present-Worth Equal-Payment-Series A FOAF, i, Sinking-Fund Equal-Payment-Series A PCAP, i, n) Capital-Recovery Equal-Payment-Series APA, i, n Present-Worth Cash Flow Diagram 1 2 3 n-1 n 1 2 3 n-1 n 0 1 2 3 n-1 Y Y Y 1 2 3 n-1 n 1 2 3 n-1 n