ECONOMIC FEASIBILITY

Cost Benefit Analysis

Name of Cost (in PhP) Benefits

Item/Package/Module
Sales Module
Inventory Module
Client-Server Hardware
(19 client terminals and
1 server0
Network Installation
Customer Product Kiok
Total: PhP790,000.00
15,000.00 - Eases the management of sales transactions
- Increases the throughput rate of the cashier by
60%
- Daily sales report are upto date
25,000.00 - Eases the management of inventory update
- Could cater the integration with sales module of
upto 100 connections
- Saves time and effort
680,000.00 - Improves sales and inventory transaction speed
- 1 year free monthly maintenance
- Free software installation
- 2 years free anti virus subscription
22,000.00 - New and hi-technology support for 50 client
computers
48,000.00 - Aids customer in the inquiry of products
- Free installation

Cost Recovery Scheme

Estimated Cost

Particulars Estimated Cost

The System PhP 790,000.00

Other Annual Operating Cost

Paper and Ink PhP 20,000.00
Electricity 120,000.00
Manpower (@ PhP 5,000.00 per month for 20 users) PhP 1,200,000.00
Subtotal (Annual Operating Cost): PhP 1,340,000.00

Initial Estimated Annual Cost: PhP 2,130,000.00

Recovery Scheme

On top of VAT, the store must include a SYSFEE of eight percent (8%) of the total sales for every
sales transaction done. If a customer spends an average of PhP 500.00 for every sales transactions, then
the store will be collecting PhP 40.00 to cover a small portion of the estimated expenditures. If the
estimated number of 3,500 sales transactions is done in a month, then the store will be collecting PhP
140,000.00 each month, which is PhP 1,680,000.00 per annum. It would take two (2) years and 11
months for the store to recover the initial cost of the system.

Year 1
Year 2 Year 3
(Initial Year)

790,000.00 450,000.00 110,000.00

Estimated Cost + + +
1,340,000.00 1,340,000.00 1,340,000.00
2,130,000.00 1,790,000.00 1,450,000.00
Estimated Income 1,680,000.00 1,680,000.00 1,680,000.00

Balance - 450,000.00 - 110,000.00 230,000.00