Yearly sales and cost projections

Year Sales in Million
1999
2.9
2000
3.6
2001
4.3
2002
5.8
2003
2004
2005
2006
2007
2008
2009
2010
2011
Linear
1
2
3
4
5
6
7
8
9
10
11
12
13
2.74
3.68
4.62
5.56
6.5
7.44
8.38
9.32
10.26
11.2
12.14
13.08
14.02
Chart Title
f(x) = 0.94x + 1.8
5.8
5
4
4.3
Sales in
Million
3.6
3 2.9
2
1
0
1999
2000
Exponentia Log
2.8631852
2.6324
3.5881427 3.9563804
4.4966592 4.7308593
5.6352118 5.2803609
7.0620454 5.7065874
8.8501528 6.0548398
11.091008 6.349283
13.899248 6.6043413
17.418532 6.8293187
21.828899 7.0305678
27.355968 7.2126198
34.28249 7.3788202
42.962804 7.5317098
(c) 2006 Makuta Partners Pty Ltd
2001
2002
2.94
3.48
4.42
5.76
7.50
9.64
12.18
15.12
18.46
22.20
26.34
30.88
35.82
2003
2004
2005
2006
2.9
3.6
4.3
5.8
254970342.xls
2007
2008
2009
2010
2011
Discounted Cash Flow Analysis

Item Description
Cash Outflows
Total Capital Expenditure
Hardware and Software
Furniture and fixtures
Legal fees
Project Title:
Techpro e-bussiness system implementation
Year 0
Year 1
Year 2
Year 3
Year 4
180,000
20,000 .
5,000
60,000
0
0
0
0
0
0
0
0
0
0
0
0
0
240,000
20,000
5,000
Total tangible capital costs
205,000
60,000
265,000
Non recurring costs

Salaries and benefits (development)
Marketing Costs
Transportation
Training
Insurance
170,000
10,000
20,000
30,000
20,000
90,000
35,000
2,000
165,000
20,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
260,000
45,000
22,000
195,000
40,000
Total non-recurring costs
250,000
312,000
562,000
Recurring costs
Additional salary costs
Maintenance
Total recurring costs
120,000
0
120,000
120,000
20,000
140,000
0
35,000
35,000
0
35,000
35,000
0
35,000
35,000
0
35,000
35,000
Total Cash Outflows
575,000
512,000
35,000
35,000
35,000
35,000
0
0
0
80,000
10,000
90,000
82,400
20,000
102,400
84,872
20,000
104,872
87,418
30,000
117,418
90,041
30,000
120,041
80,000
120,000
25,000
20,000
269,872
180,000
28,000
20,000
345,418
220,000
28,000
20,000
388,041
710,000
111,000
85,000
1,440,731
234,872
-449,728
310,418
-139,310
353,041
213,731
213,731
5%
1.0000
0.9524
0.9070
0.8638
-$575,000 -$325,714 $210,794 $202,891
-$575,000 -$900,714 -$689,921 -$487,029
0.8227
$255,382
-$231,648
0.7835
$276,617
$44,969
$
$
$
Projected Cash Inflows/Tangible Benefits

Tangible Operating Cost Savings
Reduced staff costs (Admin & Sales)
Reduced operating costs (excluding personnel)
Nett tangible savings
Incremental revenue gains
Sales/Marketing cost reductions
Other cost savings (factory/warehouse)
Total Cash inflows
Nett Benefits
Cumulative Cash Flow
Investment Discount Rate
Discount Factors (at current discount rate)
Nett Discounted Cash Flow
Cumulative DCF
Nett Present Value (NPV via formula)
Internal Rate of Return (IRR)
170,000
110,000
30,000
25,000
267,400
-575,000
-575,000
-342,000
-917,000
232,400
-684,600
44,969
6.58%
Return on Investment =
254970342.xls
Year 5 Total Cost
4%
240,000 *Since the existing IT staff is sufficient

160,000
400,000
1,227,000
424,731 *Considering a 3% annual raise in salary.

110,000
534,731
$44,969
Item Description
Total Cash Outflows
Total Cash inflows
Net Benefits
Total Cash Outflows
Total Cash inflows
Nett Benefits
Year 0
Year 1
575000
0
-575000
470000
0
-470000
Options -->
Time
Investment
Year 1
Year 2
Year 3
Year 4
Year 5
Outflows
-575000
-512000
-35000
-35000
-35000
-35000
Year 2
512000
170000
-342000
357000
170000
-187000
Year 3
35000
267400
232400
25000
267400
242400
Year 4
35000
269872
234872
25000
269872
244872
35000
345418.16
310418.16
30000
345418.16
315418.16
Implement e-management system

In House
Contracted to Intact
Inflows
Net Benefits Outflows
Inflows
0
-575000
-470000
0
170000
-342000
-357000
170000
267400
232400
-25000
267400
269872
234872
-25000
269872
345418
310418
-30000
345418
388041
353041
-30000
388041
Year 5
35000
388040.7048
353040.7048
30000
388040.7048
358040.7048
cted to Intact
Net Benefits
-470000
-187000
242400
244872
315418
358041
Do Nothing
Net Benefits
0
0
0
0
0
0
Project Title:
Item Description
Cash Outflows
Consultant Fee (Intact)
Legal fees
Year 0
Year 1
Year 2
Year 3
Year 4
180,000
20,000 .
80,000
10,000
50,000
0
0
0
0
0
0
0
0
60,000
0
230,000
20,000
140,000
10,000
290,000
110,000
400,000
Non recurring costs

Marketing Costs
Transportation
Training
Insurance
120,000
10,000
10,000
30,000
10,000
25,000
35,000
2,000
165,000
10,000
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
145,000
45,000
12,000
195,000
20,000
417,000
$
$
$
$
Year 5 Total Cost
AUD
$
$
$
$
$
$
$
$
98,550
269,370
194,618
46,428
229,950
837,894
239,148
161,272
180,000
237,000
Recurring costs
Maintenance
0
0
0
0
10,000
10,000
0
25,000
25,000
0
25,000
25,000
0
30,000
30,000
0
30,000
30,000
0 *Since the existing IT staff is sufficient

120,000
120,000
Total Cash Outflows
937,000
470,000
357,000
25,000
25,000
30,000
30,000

0
0
0
80,000
10,000
90,000
82,400
20,000
102,400
84,872
20,000
104,872
87,418
30,000
117,418
90,041
30,000
120,041

Total Cash inflows
80,000
170,000
110,000
30,000
25,000
267,400
120,000
25,000
20,000
269,872
180,000
28,000
20,000
345,418
220,000
28,000
20,000
388,041
710,000
111,000
85,000
1,440,731
-470,000
-470,000
-187,000
-657,000
242,400
-414,600
244,872
-169,728
315,418
145,690
358,041
503,731
503,731
5%
1.0000
0.9524
0.9070
0.8638
-$470,000 -$178,095 $219,864 $211,530
-$470,000 -$648,095 -$428,231 -$216,702
0.8227
$259,495
$42,794
0.7835
$280,534
$323,328
Nett Benefits
Cumulative DCF
323,328
18.80%
Linear
1
2
3
4
5
6
7
8
9
10
11
12
13
2.74
3.68
4.62
5.56
6.5
7.44
8.38
9.32
10.26
11.2
12.14
13.08
14.02
ExponentialLog
8631852
2.6324
881427
563804
966592
308593
5.6352118
803609
0620454
065874
501528
548398
11.091008 6.349283
99248
043413
18532
293187
28899
305678
55968
126198
34.28249
788202
62804
317098
2.94
3.48
4.42
5.76
7.50
9.64
12.18
15.12
18.46
22.20
26.34
30.88
35.82
67.5
184.5
133.3
31.8
157.5
573.9
163.8
110.46
plan
devlop
training
marketing
Capital investment
Total
Grant Approved
Grant Used
424,731 *Considering a 3% annual raise in salary.

110,000
534,731
inefficiencies in day to day operations, specifically the administrative overheads in managing their supply
chain
recording and tracking time spent on individual jobs performed within manufacturing
producing accurate quotations for new orders
cost effective production of prototypes for customer orders
over reliance on the use of paper based filing systems
$323,328
35%
2.9
3.6
4.3
5.8
$
$
$
$
$
9,490,000
10,862,400
12,234,800
13,607,200
14,979,600
254970342.xls

Item Description
Cash Outflows
Legal fees
Project Title:
Year 0
$
$
$
Year 2
Year 3
Year 4
Year 5 Total Cost
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Non recurring costs

Marketing Costs
Transportation
Training
Insurance
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Recurring costs
Maintenance
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0 *Since the existing IT staff is sufficient

0
0
Total Cash Outflows

0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0 *Considering a 3% annual raise in salary.

0
0

Total Cash inflows
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Nett Benefits
0
0
0
0
0
0
0
0
0
0
0
0
5%
1.0000
$0
$0
0.9524
$0
$0
0.9070
$0
$0
0.8638
$0
$0
0.8227
$0
$0
0.7835
$0
$0

Cumulative DCF
Year 1
Err:523
254970342.xls
#DIV/0!
$0

Yearly sales and cost projections

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Yearly sales and cost projections

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Year Sales in Million

(c) 2006 Makuta Partners Pty Ltd

Discounted Cash Flow Analysis

Techpro e-bussiness system implementation

Total tangible capital costs

Non recurring costs

Total non-recurring costs

Total Cash Outflows

Projected Cash Inflows/Tangible Benefits

(c) 2006 Makuta Partners Pty Ltd

Year 5 Total Cost

240,000 *Since the existing IT staff is sufficient

424,731 *Considering a 3% annual raise in salary.

Implement e-management system

Discounted Cash Flow Analysis

Techpro e-bussiness system implementation

Total tangible capital costs

Non recurring costs

Total non-recurring costs

Year 5 Total Cost

0 *Since the existing IT staff is sufficient

Total Cash Outflows

Projected Cash Inflows/Tangible Benefits

Incremental revenue gains

(c) 2006 Makuta Partners Pty Ltd

424,731 *Considering a 3% annual raise in salary.

Discounted Cash Flow Analysis

Year 5 Total Cost

Total tangible capital costs

Non recurring costs

Total non-recurring costs

0 *Since the existing IT staff is sufficient

Total Cash Outflows

Projected Cash Inflows/Tangible Benefits

0 *Considering a 3% annual raise in salary.

Incremental revenue gains

Investment Discount Rate

(c) 2006 Makuta Partners Pty Ltd

Techpro e-bussiness system implementation

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