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ROI and TCO calculations

ROI and TCO calculations

ROI and TCO calculations

Question Description

Assignment Instructions and Requirements

First, download the required template for this assignment:

Use of this template is required. Do not alter the formatting; simply fill in the content as explained below. Failure to submit the assignment using this template will result in zero points.

Scenario:

Your 504 Technologies client is thinking about buying tablets for her traveling crew, and has asked you to verify if it would be a financially good investment. The client intends to purchase 5 tablets and thinks that using this kind of technology will ultimately save her company $4000 over two years, as it will save on travel expenses and employee overtime.

There will be other costs in addition to the purchase of the tablets, of course:

  • A monthly connection fee of $5 per month will be charged by the internet provider.
  • Over a period of five years, you estimate that each of the tablets will need a repair that costs an average of $50.
  • At the end of that five-year period, you estimate the resale value of each tablet to be 50% of its original value (rounded to the nearest whole dollar for this exercise).

Light Research:

You will need two sources for this assignment:

  1. Shop online for a tablet that costs between $150 and $350 (base price, not including tax or shipping). You may use any vendor’s site you wish; your professor must be able to view the site without logging in, however. For your calculations, round the cost to the nearest dollar.
  2. Find a suitable online source that explains Net Present Value.

Write and Calculate:

  • Add your name and the date to the template’s cover page.
  • Product Identification:
    • Fill in the tablet product information as indicated on page 2.
  • ROI Calculation:
    • Base your answer on the purchase of all five
    • Assume the ROI is based on one year.
    • Use the base price of the tablets rounded to the nearest dollar, without adding tax, shipping, or other costs.
    • Show your math clearly, either in paragraph or equation form. Provide an explanation (labeling), not just the numbers. Round your final percentage to the nearest whole number.
  • TCO Calculation:
    • Base your answer on the purchase of just one
    • The time period for this is five years.
    • Again, use the base price of the tablet rounded to the nearest dollar.
    • Make sure you include internet access, repairs, original costs, and resale value at the end of the time period. Do not add tax or other potential costs.
    • Show your math clearly, in equation, chart, or paragraph form. Provide an explanation, not just the numbers.
  • NPV Explanation:
    • Write 50–80 words explaining the concept of Net Present Value.
    • Write this entirely in your own words. Do not copy or quote from your source.
  • Additional Sources:
    • Insert the URL to your NPV source. As this is a work document, in-text citation is not required in the NPV paragraph.

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