c. Prepare a 350-700-word memo to the CFO outlining the following:
1) Factors to be considered in estimating the incremental after tax cash flows for the project. (Be sure to address the outflows and inflows at the beginning of the project as well as over its life).
2) Describe ways of evaluating the project and recommend which approach is best. Give the reasons for your choice.
Factors to be considered in estimating the incremental after tax cash flows for the project-
Solutions regarding Project implementation, Factors of new software project implementation, ways of evaluating the project and recommend which approach is best, cash flows in project implementation, advatages of Decision Support System:
Factors to be considered:
The need for change is being discussed since long and for replacement the current system with a new system has to be well planned, following factors have to be considered for getting the complete financial implication of project which underlines the benefit derived from the new project of software implementation. At the same time it also implies to study cash flows in detail and the evaluation of project. Based on this broad view various factors that will effect are discussed below.
1) CASH outflow at the beginning: cost of software, hardware and the networking, Cost of installation of software & training of personnel.
2) CASH inflow at the beginning: sale of old software, hardware and networking equipment, investment allowance and other Income Tax/ Investment incentives available.
3) CASH inflow while executing project:
a) that is during life of project include depreciation which will be charged every year for projected life of ...