Cost

Development Cost
Hardware
Software
Training

Year 0

Year 1

Year 2

750

750

10 000
5 000
4 000
19 000

Total
Production Cost
Supplies
IS Personnel
Maintenance

15 000
1 500

16 500
1 500

Annual Production Cost

17 250

18 750

Present Value

15 000

14 177

Acumulate Cost

34 000

48 177

Benefits

Year 0

Labor Savings

Year 1

Year 2
18 000

18 900

22 500

24 750

40 500

43 650

Present Value

35 217

33 068

Acumulate Benefits
Gain or Loss

35 217
1 217

68 285
20 108

Total

Profitability Index

53 832 / 19 000 = 2.83

832 / 19 000 = 2.83

Year 3

Year 4

750

750
18 150
1 500

19 965
1 500

20 400

22 215

13 412

12 701

61 585

74 286

Year 3

Year 4
19 845

20 837

27 225

29 947

47 225

50 784

30 967

29 019

99 252
37 654

128 271
53 832