Feasibility Analysis

FEASIBILITY ANALYSIS

The following feasibility analysis has been conducted by Vidyasagar Velamala,

Jayakanth Kaveripakam, Surya Regmi and Phani Kandala for the web-based system created for the Houston Crime Consultancy.

TECHNICAL ANALYSIS:

Familiarity with Application:

Risk Level: Low

 Creating online an entirely new system.

 The IT department has extensive knowledge of similar systems and is capable of

developing web-based information system.

 External consultants are readily available online to provide technology support in this system.

Familiarity with Technology:

Risk Level:Low

 The project will be developed using ASP.NET and SQL for the database.

 The developers are mostly familiar with the technologies being used.

Project Size:

Risk Level: Low

 The project team likely will include less than 5 people.

 Business user involvement will be required. ECONOMIC FEASIBILITY:

According to the cost-benefit analysis below, the new system is considered to be economically feasible. The figures in cost-benefit analysis represent the tangible benefits.

2010 2011 2012 2013 Total Benefits Increased sales from New Customers $300,000 $345,000 $385,000 $1,030,000 Reduction in Operational Costs $50,000 $52,500 $57881.25 $160381.25 $1190381.2 Total Benefits $350,000 $397,500 $442881.25 5

Development Costs Servers $85,000 $0 $0 $0 $85,000 Printer $45,000 $45,000 Software licenses $25,345 $0 $0 $0 $25,345 Server software $15,985 $0 $0 $0 $15,985 Development labor $195,745 $0 $0 $0 $195,745 Total Development Costs $367,075 $0 $0 $0 $367,075

Operational Costs Hardware $45,000 $45,000 $45,000 $135,000 Software $20,000 $20,000 $20,000 $60,000 Operational labor $115,000 $125,583 $145,853 $386,436 Total Operational Costs $547,075 $190,583 $210,853 $581,436

Total Costs $322,015 $138,000 $142,500 $146,243 $748,758

Total Benefits- Total Costs ($322,015) $312,000 $377,500 $428,757 $796,242 Cumulative Net Cash Flow ($322,015) ($10,015) $367,485 $796,242

Return on 1.06341701 (796,242/748,75 Investment (ROI) 9 10.63% 8) Break-even Point 0.0265 2.65 years