EXCEL Case Part 1

Tin Dai
MIS 3300
Professor Hao Xia
Super Skateboard Builders Inc.
Sheet 1
Sheet 2
Sheet 3
Sheet 4
Sheet 5
Sheet 6

Table of Contents

By Name:
Table of Contents
One-Time Costs
Reccuring Costs
Recurring Benefits
Economic Feasibility
Break-Even Chart

One Time Costs

One-Time Cost
Software Licenses
Hardware
Network and Communications Upgrades
Training
Configuratin and Implementation
Total

Costs
Dollar Amount
($500,500)
($75,500)
($25,500)
($25,500)
($1,750,500)
($2,377,500)

RECURRING COSTS
Recurring Costs
Software License Maintenance Fees
New IT Employees (2x80250)
Total

NG COSTS
Dollar Amount
($80,500)
($160,500)
($241,000)

Recurring Benefits
Recurring Benefits
Increased Profit Due to Incresed Sales
Reduced Inventory Holdings Costs
Reduction in Clerical Workforce
(4x50125)
Total

Benefits
Dollar Amount
$750,500
$250,500
$200,500
$1,201,500

Discount Rate

0.15

0
Benefits
Recurring Value of Benefits
Present Value Factor
Present Value of Benefits
Net Present Value of All Benefits

Costs
One-Time Costs
Recurring Costs
Present Value Factor
Present Value of the Recurring Costs
Net Present Value of All Costs

Overall Net Present Value

$
$

$1,201,500
0.869565217
1,044,782.61
1,044,782.61

(2,377,500.00)
0 $
1
0 $
(2,377,500.00) $

0
(241,000.00)
0.869565217
(209,565.22)
(2,587,065.22)

0
(2,377,500.00) $

1
(1,542,282.61)

1
$
$

Economics Feasibility
Year
2

$
$

$
$
$

$1,201,500
0.756143667
908,506.62 $
1,953,289.22 $

$1,201,500
0.657516232
790,005.75 $
2,743,294.98 $

$1,201,500
0.571753246
686,961.52 $
3,430,256.50 $

$1,201,500
0.497176735
597,357.85
4,027,614.35

0
(241,000.00) $
0.756143667
(182,230.62) $
(2,769,295.84) $

0
(241,000.00) $
0.657516232
(158,461.41) $
(2,927,757.25) $

0
(241,000.00) $
0.571753246
(137,792.53) $
(3,065,549.79) $

0
(241,000.00)
0.497176735
(119,819.59)
(3,185,369.38)

3
(184,462.28) $

4
364,706.72 $

5
842,244.97

Year
$

2
(816,006.62) $

Total
$

6,007,500.00

$
$

(2,377,500.00)
(1,205,000.00)

(3,713,299.81)

Overall Net Present Value

0
1
$ (2,377,500.00) $ (1,542,282.61)

$1,500,000.00
$1,000,000.00
$500,000.00
$$(500,000.00) 0
$(1,000,000.00)
$(1,500,000.00)
$(2,000,000.00)
$(2,500,000.00)
$(3,000,000.00)

Break Even Point

2
$ (816,006.62) $

3
(184,462.28) $

4
364,706.72 $

Overall Net Present Value

6
Overall Net Present Value

5
842,244.97