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Project Financials Exercise

The document outlines a proposed new automation software project for a company's Finance department. It would replace manual reporting processes and free up resources. The proposal includes costs for development, hardware, and licenses over the project period from November 2020 to June 2021, as well as expected maintenance costs and benefits in reduced costs and fines.

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Alexandra
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30 views

Project Financials Exercise

The document outlines a proposed new automation software project for a company's Finance department. It would replace manual reporting processes and free up resources. The proposal includes costs for development, hardware, and licenses over the project period from November 2020 to June 2021, as well as expected maintenance costs and benefits in reduced costs and fines.

Uploaded by

Alexandra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Initiative Name New automation software for Finance

Description Building an automated reporting software for the Finance department which will al
manual labour required
Business Driver Alignment Risk reduction (less manual errors), Efficiency
Scope Build and implement a reporting software replacing the work of 2 employees. Proje

Initiative Cost Cost categories


Resources for software development
Hardware
Licenses for reporting engine

TOTAL
Maintenance Cost (if applicable)

Benefits Benefit Categories


Decreased cost with employees in Finance department
Less fines from late submission of financial reports to ANAF

TOTAL
ance department which will allow better processing of information with less

he work of 2 employees. Project start 1 Nov 2020, project end 30 June 2021.

2020 2021 2022 2023


20,000 60,000
10,000
10,000

30,000 70,000 - - - - 100,000


2020 2021 2022 2023 2024 2025
1,000 2,000 2,000 2,000 2,000 9,000

2020 2021 2022 2023 2024 2025


12,000 24,000 24,000 24,000 24,000
2,000 4,000 4,000 4,000 4,000

- 14,000 28,000 28,000 28,000 28,000 126,000

ROI 15.60%
ROI (Return on investment) = (sum of all benefits - sum of all costs incl maintenance)/(sum of all costs incl mainten
of all costs incl maintenance)
Cost categories - budget Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21
Resources for software development 10,000 10,000 10,000 10,000 10,000 10,000
Hardware 5,000 5,000
Licenses for reporting engine 1,667 1,667 1,667 1,667

TOTAL 15,000 15,000 11,667 11,667 11,667 11,667

Cost categories - actuals/forecasts Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21


Resources for software development 15,000 10,000 8,000 14,000 9,000 10,000
Hardware - 11,000 - - - -
Licenses for reporting engine - - - 4,000 4,000 4,000

TOTAL 15,000 21,000 8,000 18,000 13,000 14,000

56,000 11,200 run rate for full project life


31,000 10,333.33 run rate for 2021
variance = budget (plan) - act
Cost categories - variance Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21
Resources for software development - 5,000 - 2,000 - 4,000 1,000
Hardware 5,000 - 6,000 - - -
Licenses for reporting engine - - 1,667 - 2,333 - 2,333
- - - - -
- - - - -
TOTAL - - 6,000 3,667 - 6,333 - 1,333 -
May-21 Jun-21 YTD April
10,000 10,000 30,000
-
1,667 1,667 5,000
-
-
11,667 11,667 35,000

May-21 Jun-21 YTD April Overall Project Cost


10,000 10,000 31,000 86,000
- - - 11,000
4,000 4,000 8,000 20,000
- -
- -
14,000 14,000 39,000 117,000

run rate for full project life


run rate for 2021
variance = budget (plan) - actuals)
May-21 Jun-21 YTD April 5% Tolerance
- 1,000
-
- 3,000
-
-
- - - 4,000 1,750

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