FEASIBILITY STUDY ECONOMIC
FEASIBILITY STUDIES Year | 1 | 2 | 3 | 4 | 5 | Benefit : | RM | RM | RM | RM | RM | Reduce staff salary | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 | Reduce the fee for do the accounting report | 60,000 | 60,000 | 60,000 | 60,000 | 60,000 | Improve the security of supplier’s details | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 | Save the management time | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 | Total benefits | 210,000 | 210,000 | 210,000 | 210,000 | 210,000 | Discount Rate (12%) | 0.8929 | 0.7972 | 0.7118 | 0.6355 | 0.5474 | PV of Benefit | 187,509 | 167,412 | 149,478 | 133,455 | 114,954 | Cost | | | | | | One-time Costs: | | | | | | hardware-replacement & upgrade computers | 40,000 | | | | | software- update version of software | 20,000 | | | | | initial system design | 20,000 | | | | | installation | 10,000 | | | | | training staff | 25,000 | | | | | legal fees | 5,000 | | | | | Total one-time cost | 120,000 | | | | | Recurring Costs | | | | | | Renew software license(annual) | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | system maintenance | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | labor cost | 55,000 | 55,000 | 55,000 | 55,000 | 55,000 | overhead | 15,000 | 15,000 | 15,000 | 15,000 | 15,000 | Total Recurring Cost | 90,000 | 90,000 | 90,000 | 90,000 | 90,000 | Total cost | 210,000 | 90,000 | 90,000 | 90,000 | 90,000 | Discount Rate (12%) | 0.8929 | 0.7972 | 0.7118 | 0.6355 | 0.5474 | PV of total cost | 187,509 | 71,748 | 64,062 | 57,195 | 49,266 | Benefit - recurring cost | 0 | 95,664 | 85,416 | 76,260 | 65,688 | ROI | 0% | 133.33% | 133.33% | 133.33% | 133.33% |

Based on the table, we can clearly know about the benefit and cost after implemented the purchasing system in the following 5