Cost-Benefit Analysis and Project Budget
We are creating a Smartphone application for use as a travel aid for the public and the profit will be donated to the partnership for children charity. The total budget allocated for this project is £20,000. We have £10,000 from our own funds and we will be using this fund for the promotion of the app with £10,000. The council has also provided us with £10,000 subsidy. We have used our funds on Feasibility, User Requirement and Analysis, Design, Coding, Testing and Operation. This is very useful as it is a one-off cost, and we will not be spending on this again but it will benefit us in the long run.
The total population in the Kingston upon Thames Borough is 160,400 according to the Office of National Statistics 2012. We hope that 25% of the population in the Kingston upon Thames Borough will purchase this application within the first 12 months of release. If 25% of the population purchased the app, there would be 40,100 customers. Therefore, the total revenue generated for 25% of the population would be 40,100 x £1.49 = £59,749. The profit would be (Revenue – Cost) £59,749 - £20,000 = £39,749. This project is very sustainable because it is simple to run and easily profitable. Any profit generated will go back to the maintenance of the application and the remainder will be donated back to Partnership for Children Charity. As a team we have come up with a more accurate budget for creating a Smartphone application. We have investigated and researched into all the areas of the project where we as a team think money will be used. Below you can see a table of our budget plan.
The total budget is the overall cost of the project.
In addition, when we were creating a smart phone app project clearly we focuses the best way to have an effective project management was by following PRINCE2 methodology. The selections of Prince2 methodology clearly focus on business justification. Besides that it is...
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