Cost Benefit Analysis

Cost-Benefit Analysis or CBA estimates and sums up the equivalent money value of the benefits & costs of the system in order to determine whether it is profitable or worth the investment.

Developmental Cost Duration Monthly Cost Total Amount
Programmer 6 months Php 4,500.00 Php 27,000.00
System Analyst 6 months 5,500.00 33,000.00
Project Manager 6 months 6,500.00 39,000.00
Office Supplies 6 months 150.00 900,00
Internet Connection (PLDT) 6 months 1,500.00 9,000.00
Electricity 6 months 240.00 1,440.00
Total Php 109,440.00

 Table 2.0: Developmental Cost

Table 2.0 shows the total developmental cost of the proposed system. It indicates proponents’ salary and the cost of researching and forming of the research system.

Table 2.1: Operational Cost

Operational Cost Duration Monthly Cost Total Amount
Electricity 12 months Php 950.00 Php 11,400.00
Maintenance Fee 12 months 1,025.00 12,300.00
Internet Connection (PLDT) 12 months 1,500.00 18,000.00
Total     Php 41,700.00

Table 2.1 above shows the operational cost of the proposed system. It contains the maintenance cost and expense in using the proposed system.

Table 2.2: Total Developmental and Operational Cost

  Total Amount
Total Developmental Cost Php 109,440.00
Total Operational Cost 41,700.00
Total Php 151,140.00

The table shows the total cost of the development and operation of the proposed system.

Table 2.3: Benefits of the System

Benefits of the System (Annually) Amount/Value
The efficiency of work/output of Employee Php 54,240.00
Work management of Employee 54,240.00
Toner 1,400.00
Bondpaper 600.00
Total Php 110,480.00

 

Table 2.3 above shows the computed benefits of the researched system to the institution. The proponents have researched on what are the presumed amounts or value of each item that will benefit the institution over its traditional method per year.

Table 2.4: Cost-Benefit Analysis

ROI

Table 2.4: Cost-Benefit Analysis

Return on Investment 68%

 Table 2.4 shows the cost-benefit analysis of the system. Each figure has corresponding data as shown in the table. The payback period came out as 2.75 with an ROI of 68%.

Questions