Using excel, prepare a cost benefit summary with a short narrative and calculation table for the following scenario. Calculate each tool listed below in the calculation table.

Auditing Software. New software and training costs $775,000. The software will reduce travel, manual document control and auditor efficiency. Currently the organization completes 120 audits annually with each averaging 80 hours of total auditor time including travel, documentation and filing. The new software will reduce auditor hours by 10% on average per audit. The cost by hour of each auditor with burden is $150.

Tools:

Basic ROI=Net benefit/Total Cost (use a 3 year model).

Payback Period=Initial Investment/Cash Inflow per Period.

Net Present ValueNPV(rate,value1,[value2],...) Use 10% discount rate.

Internal Rate of Return IRR(values,....).