Your 504 Technologies client is thinking about buying either tablets or smartphones for her traveling crew, and
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Question:
Your 504 Technologies client is thinking about buying either tablets or smartphones for her traveling crew, and has asked you to verify if it would be a financially good investment. The client intends to purchase 5 such devices and thinks that using this kind of technology will ultimately save her company $4000 over two years, as it will save on travel expenses and employee overtime.
There will be other costs in addition to the purchase of the devices, of course:
- A monthly connection fee of $5 per month per device will be charged by the internet provider.
- Over a period of five years, you estimate that each of the devices will need a repair that costs an average of $50.
- At the end of that five-year period, you estimate the resale value of each device to be 50% of its original value (rounded to the nearest whole dollar for this exercise).
Light Research:
You will need two sources for this assignment:
- Shop online for a tablet or a smartphone that costs between $150 and $350 (base price, not including tax or shipping). You may use any vendor's site you wish; your professor must be able to view the site without logging in, however. For your calculations, round the cost to the nearest dollar.
- Find a suitable online source (not a library item and not one that requires login information) that explains Net Present Value.
Write and Calculate:
- Add your name and the date to the template's cover page.
- Product Identification:
- Use the dropdown in the template to identify the device as either a tablet or a smartphone.
- Fill in the device product information as indicated on page 2.
- Make sure the URL is complete (not to a home page).
- ROI Calculation:
- Base this answer on the purchase of five of these devices.
- Assume the ROI is based on one year.
- Use the base price of the devices rounded to the nearest dollar, without adding any tax, shipping, or other costs.
- Show your math clearly, either in paragraph or equation form. Provide an explanation (labeling), not just the numbers. Round your final percentage to the nearest whole number.
- TCO Calculation:
- Base your answer on the purchase of just one device
- The time period for this calculation is five years.
- Again, use the base price of the device rounded to the nearest dollar.
- Make sure you include internet access, repairs, original costs, and resale value at the end of the time period. Do not add any tax or other potential costs.
- Show your math clearly, in equation, chart, or paragraph form. Provide an explanation, not just the numbers.
- NPV Explanation:
- Do not attempt to calculate this; instead, write a paragraph of 50-80 words explaining the concept of Net Present Value.
- Write this entirely in your own words and in formal style. Do not copy or quote from your source.
- Additional Sources:
- Insert the URL to your NPV source. As this is a work document, in-text citation is not appropriate in the NPV paragraph.
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