System Design Report Assignment Example | Topics and Well Written Essays - 1500 words

System Design Report - Assignment Example The additional advantage of conducting the economic feasibility study is that it aids in developing a preliminary projecting of the new client server based system’s benefits in terms of the monetary returns or revenues expected from using the system. The benefits of the new system are expected to mainly come from various sources, that is, one of them being from the increased sales from the rental of the DVDs via the online platform system. The costs incurred in developing the system also form an important part of calculating and determining the economic feasibility of the system. The costs include the costs for acquiring the hardware and software components used during development. Another expense that would be incurred entails the maintenance costs that are factored in during the running processes of the daily operation costs, for example, renting server and hosting space online. This is determined via utilizing the discount rate which aids in defining the present value of the cash receipts and outlays. The Net Present Value (NPV) for this particular proposed system design and implementation project gives a -$27,998.06 amount. This simply means that the business has not yet realized any profit since it is still in the initial stages of its operation. The Return on Investment (ROI) represents the ratio of the cash receipts to that of cash outlay. The Return on Investment (ROI) for this project is at 0.239% which means that the project has realized some resource yielding benefits. It represents the efficiency of the business by highlighting the common profitability of running this business project. The Pay Back Analysis (PBA) focuses on the periods expected for the breakeven point of the business project to be realized. It represents the amount of time necessary for the cumulative cash flow to be equivalent to the original and preliminary ongoing investment. The payback period (Breakeven Point) for the