Statistical Dynamics - ROI - Return On Investment

ROI Projection for Elearning Corporation

	ROI Analysis										Rev4.0-08/21/01
											mjb
1	Date: 06/08/01
2	Project Name:PROJX
3	Brief Description (2 lines or less):
	Server Implementation
	2 units this order

4	Related Website:
	Revised Date:
	(ALL DOLLAR VALUES SHOULD BE IN THE THOUSANDS)
							2002	2003	2004	2005
							Year 0	Year1	Year2	Year3	Totals
5	Revenue						1,311	1,639	2,048	2,561	7,559
	Growth							25.00%	25.00%	25.00%
6	Headcount										0
6a			Personnel								0
6a1				OS		0.675	2	3	3	3	3
6a2				Java		0.2	1	1	1	1	1
6a3				Web App		0.05	0	0	0	0	0
6a4				Third Party		0.025	0	0	0	0	0
6a5				Server App		0.05	0	0	0	0	0
6b			Facility								0
6c			Facilitator (if applicable)								0
6d			Coordinator/Admin cost								0
6e			Ops Personnel								0
6f			Other (explain)								0
		Total Headcount					3	4	4	4	4
		Total Cost									0
	utilization		0.55			1	4	4	4.4	4.84
	Expenses($K)							0.1	0.1	0.1
	no. of facilities						1	1	1	1
7		Compensations/Bonuses					409	473	520	572	1973
		Comp adj						0.05	0.05	0.05

8		Maintenance									0
8a			Back up								0
8b			Ongoing Audit								0
8c			Contracts

9		Marketing/Communication/Sales					236	295	369	461	1,361


10		Services									0
10a			Consulting								0
10b			Contractor/Temp								0

11		Travel Cost					30	40	40	40	150

12		Software Cost (under $3K)									0
12a			License cost								0
12b			Upgrade Cost								0
12c			Maintenance								0
12d			Other (explain)								0

13		Miscellaneous Cost									0
13a			Parts & Supplies				3	4	4	4	15
13b			Off-site Meetings				6	8	8	8	30
13c			Freight								0
13d			Testing								0
13e			Occupancy				55	60	66	73	253
13f			Training Cost								0
13g			Fees								0
13h			Facilities				0	0	0	0	0
			growth	0.1
		Subtotal Operating Costs					743	885	1,012	1,163	3,782

	Capital		(over $3K)								0

14	Equipment										0
14a		Servers					1,150	50	50	50	1,300
14b		Desktops					0	0	0	0	0
14c		Software					0	0	0	0	0
14d		Other (explain)					0	0	0	0	0
	Sub-total						1,150	50	50	50	1,300
	Subtotal capital Costs-Depr						383	400	417	50	1,300
	Internal offset-expense						-935	-375	-375	-375	-2,060
	Total Cost						192	910	1,054	838	5,082

	Revenue/Cost Savings										0

15		Reduced Headcount									0

16		Maintenance Savings									0

17		Other (explain)									0

	Total Revenue						1,311	1,639	2,048	2,561	7,559

	CCM						1119	729	995	1722
							85.39%	44.49%	48.56%	67.26%
	GM						103.39%	62.49%	66.56%	85.26%
	Intangible Benefits			(see Help menu for more details)

18		More control of RC operations
19		Increase in customer satisfaction
20		Improved trend analysis
21		Better metrics & statistics leading to improved efficiency
22

							2002	2003	2004	2005
							Init. Invest.	Year1	Year2	Year3	Totals
26	Operating Cash Flows						1,119.40	729.1	994.8	1,722.30	4,565.60
27	Depreciation						383.3	400	416.7	50	1,250.00
28	Taxable Amount						1,502.70	1,129.10	1,411.40	1,772.30	5,815.60
29	Tax Rate used =			38%	(from the tax dept.)		571	429.1	536.3	673.5	2,209.90

30	Net after Tax Cash Flow						931.7	700.1	875.1	1,098.80	3,605.70
31	Net Present Value Pre Tax						1,306.70	2,160.50	3,088.50	4,101.90	5,057.10
32	Net Present Value After Tax						810.2	1,339.50	1,914.90	2,543.20	4,335.80

33	EXPLANATIONS:
	positive npv
34	Discount Factor used = 15% (WACC)			15%	(WACC)