Chapter 7 COST AND BENEFITS ANALYSIS

System Specification The researchers proposed to the Mactan National High School are the following hardware and software specification and its cost, which is necessary to the proposed system.

Hardware Specification Processor : Intel Core 2 Duo (2.4 Ghz) Motherboard : MSI G3IMF board (LGA 755) Random Access Memory (RAM) : 1GB DDR2 667 Hard disk Drive : 500 GB HDD SATA DVD-ROM : Sony 24X OEM SATA Monitor : ViewSonic 18.5 LCD Mouse : A4Tech OP 720 Optical Mouse USB Keyboard : A4Tech KBS-720-A-Shape USB Black AVR : Giant Automatic Voltage Regulator 500W Printer : HP Deskjet K010A Ink Advantage

39 Software Specification Windows 7 SQL Server 2005 Express Edition Development Cost of the System I. II. III. Hardware Software Manpower Php 20, 400.00 8, 500.00 8, 000.00 Php 36, 900.00

Total Development Cost Annual Operating Cost of the System I. Current System Supplies Short Bond paper Long Bond paper Folders Ballpen File Cabinet Printer Ink Php 3, 120.00 4, 560.00 2, 100.00 200.00 20, 500.00 8, 640.00

Php 39, 120.00

40 Electricity 1 computer set (500w) 1 printer (200w) Total Operating Cost of the Current System Php 11, 000.00 400.36 Php 11, 400.36 Php 50, 520.36

II. Proposed System Supplies Short Bond paper Long Bond paper Folders Ballpen Printer Ink Electricity 1 computer set (500w) 1 printer (200w) Total Operating Cost of the Current System Php 11, 000.00 400.36 Php 11, 400.36 Php 21, 978.36 Php 2, 120.00 2, 560.00 1, 500.00 78.00 4, 320.00 Php 10,578.00

41 Payback Period Future Value (fv) = Current operating cost proposed operating cost = Php 50, 520.36 21, 978.36 = Php 28, 541.00 Present Value (pv) = Future Value (fv) / (1+i)n Where i = interest annual rate of n% n = number of years Thus; Present value (1 year) = 28, 541.00 / (1+10%)1 = 25, 946.36

Table 6. Yearly Benefits Year 1 2 Future Value 28, 541.00 28, 541.00 (1+i)n 1.1 1.21 Present Value 25, 946.36 23, 587.60 Accumulated Value 25, 946.36 23, 587.60

42 Payback Period = Total Development Cost / Average Present Value = Php 36, 900.00 / Php 24, 766.98 = 1.49 = 1 year and 5 months

Benefits The implementation of the proposed system could benefit the institution by making their works easier and faster, and it is cheaper at cost than the current system. In connection with this, the user could rely by means of data security and less error system performance. The system is also efficient in a way that it would provide quick response. The system also gives the user convenience by simply clicking the buttons that has corresponding actions that makes their work easier and faster. In addition to this, the institution could save time because the data stored in the system is automatically filtered that makes the transactions easier and responded in short period of time. Furthermore, the institution could get their payback period of the proposed system after 1 year and 5 months.