Question: Calculate NPV of all benefits In 5 years labor costs reduced by $250,000 per year and gross revenue increase by $150,000 per year. Maintenance costs

Calculate NPV of all benefits

In 5 years labor costs reduced by $250,000 per year and gross revenue increase by $150,000 per year.

Table 1 - CAD System Components Year 0 Costs Item Quantity Costleach Hardware PCs 50 $1,700 Network Cards 50 $50 Servers 2$3

Maintenance costs over 5 year period

Table 2 - Estimated Annual Maintenance Costs 2011 2012 2013 2014 2015 PCs $5,000 $5,000 $5,000 $5,000 $5,000 Network cards $5

Table 1- CAD System Components Year 0 Costs Cost/each Item Quantity Hardware $1,700 $50 $3,000 $5,500 $3,100 PCs 50 Network Cards 50 2 3 Servers Color Laser Printers Color Laser Plotters Telecommunications Backup Unit Cabling w/plugs Routers w/Firewall 1 2,000 feet 2 $1,200 $0.75/foot $500 $700 $5,000 Switches Telephone Connection Costs Software CAD Software 50 licenses $3,500/license 501 licenses 50 licenses 50 licenses $80 $70 $250/license Database Network Office Software Services In-house Trainer AutoCAD Training In-house Systems Personnel 1 50 hours 1 $50,000 $75/hour $75,000

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