Business Management Case Analysis

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(However, time not as critical for FREP) 16/03/2007 - 14 - FREP Handheld Business Case 11.5 Quantitative Cost-Benefit Analysis Costing Template (Please refer to attached cost/benefit spreadsheet for more detail) Quantitative Analysis – Option 1 (NonHandheld) Benefits: Cost Savings Year 1 K Year 2 K Year 3 Year 4 K K 0.00 0.00 0.00 0.00 0 Year 5 Year 6 0.00 0.00 0.00 0.00 0 0.00 0.00 0.00 0.00 0 0.00 0.00 0.00 0 0 0 0 813 813 K K Total K 0.00 0.00 0.00 0.00 0.00 0 0.00 0.00 0.00 0.00 0 0.00 0.00 0.00 0.00 0 0 0 0 119 130 127 137 148 151 119 130 127 137 148 151 Net Benefit or Cost of Viable Alternative 1 Present Value of Benefits -119 0 -130 -127 -137 -148 -151 Present Value of Costs -707 NPV for Option 1 Discount Rate -707 4 Year 5 Year 6 K 0 0 0 0 13 0.00 0.00 13 13.2 0.00 0.00 13.2 13.6 0.00 0.00 13.6 25.96 0.00 0.00 28.30 86.46 763 101.1 104.1 583.69 Cost Avoidance Revenue Other TOTAL BENEFITS Costs: Non-Recurring Recurring TOTAL COSTS Quantitative Analysis – Viable Option 2 (Handheld) Benefits: Cost Savings Cost Avoidance Revenue Other TOTAL BENEFITS Costs: Non-recurring Recurring - 813 Year 1 K Year 2 K Year 3 K 0 0.00 0 0.00 0 0.00 0.00 0.00 0 0.00 0.00 0 0.00 0.00 0 311.80 27.00 27.75 92.00 92.67 95.42 16/03/2007 - 15 - Year 4 K 281.6 98.25 K Total K 39.52 FREP Handheld Business Case TOTAL COSTS Net Benefit or Cost of Viable Alternative 2 403.80 119.67 123.1 379.8 129.4 190.6 1,346.6 -92.00 -92.67 -95.42 -85.47 -88.0 -90.6 - 544.1 Present Value of Benefits 32.47 Present Value of Costs 1190.2 NPV for Alternative 2 -1158 Discount Rate 4 Quantitative Cost-Benefit Analysis 16/03/2007 - 16 - FREP Handheld Business Case Analysis: Overall, Alternative 1 (Non-Handheld Option) has the best NPV and almost a 500K difference from the Handheld.. Alternative Option 1 (NonHandheld) Strategic, Business and Program Alignment Project Risk Assessment High 58 High 108 Risk Factor Recommended Option 2 (Handheld) Cost/Benefit Analysis 16/03/2007 - 22 - NPV= -706 K Qualitative:

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