Return on Investment Analysis in HIT Planning

In the first financial year, the cost estimate for consultation is thirty thousand and reduces in the consequent financial years since system advice and analysis is all that is assessed. The analysis and costs for consultation remain fixed at 5,000 for the subsequent years but drawing a window for a supplementary budget is opened to gather for unexpected costs. In this case, it is assumed that there won’t be any extra costs brought about by changes in outside economic conditions. The implementation salaries are estimated at a hundred and fifty thousand in the year of implementation and no more costs for implementations are expected in the subsequent years. The salary costs for running the system in the following years are shifted to the recurrent expenditure portfolio, (Atkins & David, 42-61).

However, the cost for acquiring other required network requirements is estimated at three thousand for communication network subscription which is not incorporated in the SDLC system but is outsourced by an independent network provider. This cost remains the same throughout the years. Acquisition of third-party software running under the SDLC is however estimated at hundred thousand and incorporates the costs for the subsequent years. Since the SDLC license is expected to be gathered for the next two years, costs related to the system are covered by the license agreement providing a two-year trial time. The costs are expected to be around two thousand for the following year but increase due to wear and tear expected, (Chisholm et al. Works Cited Atkins, David, et al.