Tco Report
Spectre Appraisal Software
Before we do the costs analysis, there are some assumptions that should be noted: 1. The first assumption is that $65,000 cost that was occurred in 1997 will not be counted in this appraisal. It will be classified as sunk cost since the cost would be present regardless of what CAMA system will be selected. 2. The second assumption is all salary noted will increase by 4% each year, and these increment will remain static for the duration of the project. 3. The third assumption is the software maintenance is inflated by 9%, which will also remain constant for the duration of the project. | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Total Cost by Category | Software license | 1,200,000 | 0 | 0 | 0 | 0 | 1,200,000 | Software customization | 400,000 | 0 | 0 | 0 | 0 | 400,000 | Software modification | 0 | 0 | 0 | 150,000 | 0 | 150000 | Software maintenance | 0 | 180000 | 196200 | 213858 | 233105.22 | 823163.22 | Data Conversion | 300,000 | 0 | 0 | 0 | 0 | 300,000 | Assessor Staff | 189600 | 197184 | 205071.36 | 0 | 0 | 591855.36 | Hardware | 60,000 | 0 | 0 | 0 | 0 | 60,000 | Network Upgrade | 0 | 20,000 | 0 | 0 | 0 | 20000 | Training Staff | 0 | 43750 | 0 | 0 | 0 | 43750 | Total cost by year | 2,149,600 | 440934 | 401271.36 | 363858 | 233105.22 | 3,588,769 |
(FIGURE 1)
The figure 1 above is the costs spent in five years in different projects. The total cost for the Spectre Appraisal Software is $3,588,769.00, which is less than IAAO study research projection. It is obvious to see the Year 2 is the period which will spend much more than other periods, and the project on Software license expends a lot than other projects. (FIGURE 2)
The cost distribution chart (figure 2) illustrated below shows that the main cost is the software license which is 33% of the total costs alternatives. It is significant because it is a one-time software acquisition cost, and the company has to pay them once and the
Before we do the costs analysis, there are some assumptions that should be noted: 1. The first assumption is that $65,000 cost that was occurred in 1997 will not be counted in this appraisal. It will be classified as sunk cost since the cost would be present regardless of what CAMA system will be selected. 2. The second assumption is all salary noted will increase by 4% each year, and these increment will remain static for the duration of the project. 3. The third assumption is the software maintenance is inflated by 9%, which will also remain constant for the duration of the project. | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Total Cost by Category | Software license | 1,200,000 | 0 | 0 | 0 | 0 | 1,200,000 | Software customization | 400,000 | 0 | 0 | 0 | 0 | 400,000 | Software modification | 0 | 0 | 0 | 150,000 | 0 | 150000 | Software maintenance | 0 | 180000 | 196200 | 213858 | 233105.22 | 823163.22 | Data Conversion | 300,000 | 0 | 0 | 0 | 0 | 300,000 | Assessor Staff | 189600 | 197184 | 205071.36 | 0 | 0 | 591855.36 | Hardware | 60,000 | 0 | 0 | 0 | 0 | 60,000 | Network Upgrade | 0 | 20,000 | 0 | 0 | 0 | 20000 | Training Staff | 0 | 43750 | 0 | 0 | 0 | 43750 | Total cost by year | 2,149,600 | 440934 | 401271.36 | 363858 | 233105.22 | 3,588,769 |
(FIGURE 1)
The figure 1 above is the costs spent in five years in different projects. The total cost for the Spectre Appraisal Software is $3,588,769.00, which is less than IAAO study research projection. It is obvious to see the Year 2 is the period which will spend much more than other periods, and the project on Software license expends a lot than other projects. (FIGURE 2)
The cost distribution chart (figure 2) illustrated below shows that the main cost is the software license which is 33% of the total costs alternatives. It is significant because it is a one-time software acquisition cost, and the company has to pay them once and the