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Font Paragraph Styles Lab Assignment #9 Analyzing Cost and Benefit: Campus Bikes Until now, the owner of Campus Bikes shop, Ali, kept the business records on his personal computer. He created a simple database to keep track of inventory, but it is not always up-to-date. He also developed spreadsheets to track expenses and payroll. The business has grown and Ali wants to install a new computer system to handle all business functions. Ali asked you, a consultant, to do a "make or buy" analysis. Specifically, you will look into in-house development versus purchase of a software package. Your research indicates that the most popular bike shop package is offered by a vendor called Bike Data. In your last meeting, Ali said that tangible savings for a new system would be hard to measure, but improved customer care, better service department records, and increased productivity are expected. Ali estimates that these benefits will add up to about AED 6,000 per year, whether the system is developed in-house, or purchased from BikeData. You decide to compare relative costs to establish a total cost of ownership (TOC) over the useful life of the system. Based on your research, you put together the following summary: In-house development option .The system will have a six-year useful life, be very flexible, and easiest to maintain. . It will cost AED 15,000 to develop, install, and configure the system, and AED 1,000 to load existing data. Ali and the bookkeeper can handle day-to-day support with no added expense. . BikeData software package option This is a vertical package with a four-year useful life. . The software is less flexible than an in-house system and some customizing will be needed. It will cost AED 8,000 to purchase, AED 1,500 to install and configure, AED 2,500 to load existing data, and AED 1,000 additional hardware will be needed . . Support is free for the first year, then there is a AED 2,000 annual fee Tasks 1. 2. Complete a Payback Analysis for both options. Calculate ROI for both options. English (Unted States) Font Lab Assignment a9 Analyzing Cost and Benefit: Campus Bikes Until now, the owner of Campus Bikes shop, Ali, kept the business records on his personal computer. He created a simple database to keep track of inventory, but it is not always up-to-date. He also developed spreadsheets to track expenses and payroll. The business has grown and Ali wants to install a new computer system to handle all business functions. Ali asked you, a consultant, to do a "make or buy" analysis. Specifically, you will look into in-house development versus purchase of a software package. Your research indicates that the most popular bike shop package is offered by a vendor called BikeData. In your last meeting, Ali said that tangible savings for a new system would be hard to measure, but improved customer care, better service department records, and increased productivity are expected. Ali estimates that these benefits will add up to about AED 6,000 per year, whether the system is developed in-house, or purchased from BikeData. You decide to compare relative costs to establish a total cost of ownership (TOC) over the useful life of the system. Based orn your research, you put together the following summary In-house development option The system will have a six-year useful Iife, be very flexible, and easiest to maintain. It will cost AED 15,000 to develop, install, and configure the system, and AED 1,000 to load existing data. All and the bookkeeper can handle day-to-day support with no added expense. . . . BikeData software package option . . This is a vertical package with a four-year useful life The software is less flexible than an in-house system and some customizing will be needed. It will cost AED 8,000 to purchase, AED 1,500 to install and configure, AED 2,500 to load existing data, and AED 1,000 additional hardware will be needed .Support is free for the first year, then there is a AED 2,000 annual fee Tasks 1. 2. 3. Complete a Payback Analysis for both options. Calculate ROI for both options. Which alternative would you recommend to Ali and why? lish (United States) Font Paragraph Styles Lab Assignment #9 Analyzing Cost and Benefit: Campus Bikes Until now, the owner of Campus Bikes shop, Ali, kept the business records on his personal computer. He created a simple database to keep track of inventory, but it is not always up-to-date. He also developed spreadsheets to track expenses and payroll. The business has grown and Ali wants to install a new computer system to handle all business functions. Ali asked you, a consultant, to do a "make or buy" analysis. Specifically, you will look into in-house development versus purchase of a software package. Your research indicates that the most popular bike shop package is offered by a vendor called Bike Data. In your last meeting, Ali said that tangible savings for a new system would be hard to measure, but improved customer care, better service department records, and increased productivity are expected. Ali estimates that these benefits will add up to about AED 6,000 per year, whether the system is developed in-house, or purchased from BikeData. You decide to compare relative costs to establish a total cost of ownership (TOC) over the useful life of the system. Based on your research, you put together the following summary: In-house development option .The system will have a six-year useful life, be very flexible, and easiest to maintain. . It will cost AED 15,000 to develop, install, and configure the system, and AED 1,000 to load existing data. Ali and the bookkeeper can handle day-to-day support with no added expense. . BikeData software package option This is a vertical package with a four-year useful life. . The software is less flexible than an in-house system and some customizing will be needed. It will cost AED 8,000 to purchase, AED 1,500 to install and configure, AED 2,500 to load existing data, and AED 1,000 additional hardware will be needed . . Support is free for the first year, then there is a AED 2,000 annual fee Tasks 1. 2. Complete a Payback Analysis for both options. Calculate ROI for both options. English (Unted States) Font Lab Assignment a9 Analyzing Cost and Benefit: Campus Bikes Until now, the owner of Campus Bikes shop, Ali, kept the business records on his personal computer. He created a simple database to keep track of inventory, but it is not always up-to-date. He also developed spreadsheets to track expenses and payroll. The business has grown and Ali wants to install a new computer system to handle all business functions. Ali asked you, a consultant, to do a "make or buy" analysis. Specifically, you will look into in-house development versus purchase of a software package. Your research indicates that the most popular bike shop package is offered by a vendor called BikeData. In your last meeting, Ali said that tangible savings for a new system would be hard to measure, but improved customer care, better service department records, and increased productivity are expected. Ali estimates that these benefits will add up to about AED 6,000 per year, whether the system is developed in-house, or purchased from BikeData. You decide to compare relative costs to establish a total cost of ownership (TOC) over the useful life of the system. Based orn your research, you put together the following summary In-house development option The system will have a six-year useful Iife, be very flexible, and easiest to maintain. It will cost AED 15,000 to develop, install, and configure the system, and AED 1,000 to load existing data. All and the bookkeeper can handle day-to-day support with no added expense. . . . BikeData software package option . . This is a vertical package with a four-year useful life The software is less flexible than an in-house system and some customizing will be needed. It will cost AED 8,000 to purchase, AED 1,500 to install and configure, AED 2,500 to load existing data, and AED 1,000 additional hardware will be needed .Support is free for the first year, then there is a AED 2,000 annual fee Tasks 1. 2. 3. Complete a Payback Analysis for both options. Calculate ROI for both options. Which alternative would you recommend to Ali and why? lish (United States)

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