5.2.4 Contract Specifications

Lifetime: 1 Implementation Cost: $50,000. Annual Maintenance Cost: $100,000.

Year Benefits			Costs	Disc. Ben(0.1)			Disc. Cost(0.1)			DB-DC(0.1)
1 $0.			$50,000.		$0.			$45,454.		$-45,454.
Sum of discounted benefits (0.05): $0. Sum of discounted benefits (0.1): $0. Sum of discounted benefits (0.15): $0. Sum of discounted costs (0.05): $47,619. Sum of discounted costs (0.1): $45,454. Sum of discounted costs (0.15): $43,478. Benefit Cost Ratio (0.05): 0.00 Benefit Cost Ratio (0.1): 0.00 Benefit Cost Ratio (0.15): 0.00 Return On Investment (0.05): 0.00 Return On Investment (0.1): 0.00 Return On Investment (0.15): 0.00 Payback period (0.05): 0 Payback period (0.1): 0 Payback period (0.15): 0
5.2.5 Data	Encryption
Lifetime: 5	Implementation	Cost: $500,000.		Annual Maintenance Cost: $500,000.
Year	Benefits	Costs		Disc. Ben(0.1)			Disc. Cost(0.1)			DB-DC(0.1)
1	$2,545,362.	$500,000.		$2,313,965.			$454,545.			$1,859,420.
2	$2,545,362.	$500,000.		$2,103,605.			$413,223.			$1,690,381.
3	$2,545,362.	$500,000.		$1,912,368.			$375,657.			$1,536,710.
4	$2,545,362.	$500,000.		$1,738,516.			$341,506.			$1,397,009.
5 $2,545,362. $500,000. $1,580,469. $310,460. Sum of discounted benefits (0.05): $11,020,083. Sum of discounted benefits (0.1): $9,648,923. Sum of discounted benefits (0.15): $8,532,446. Sum of discounted costs (0.05): $2,164,736. Sum of discounted costs (0.1): $1,895,391. Sum of discounted costs (0.15): $1,676,075. Benefit Cost Ratio (0.05): 5.09 Benefit Cost Ratio (0.1): 5.09 Benefit Cost Ratio (0.15): 5.09 Return On Investment (0.05): 1.02 Return On Investment (0.1): 1.02 Return On Investment (0.15): 1.02 Payback period (0.05): 1 Payback period (0.1): 1 Payback period (0.15): 1 5.2.6 Detection System Lifetime: 3 Implementation Cost: $1,000,000. Annual Maintenance Cost: $200,000.											$1,270,009.
Year Benefits Costs Disc. Ben(0.1) Disc. Cost(0.1)											DB-DC(0.1)

1 $14,442. $1,000,000. $13,129. $909,090. $-895,961. 2 $14,442. $200,000. $11,935. $165,289. $-153,353.

3 $14,442. $200,000. $10,850. $150,262. $-139,412.

Sum of discounted benefits (0.05): $39,328. Sum of discounted benefits (0.1): $35,914.

Sum of discounted benefits (0.15): $32,974.

Sum of discounted costs (0.05): $1,306,552. Sum of discounted costs (0.1): $1,224,641.

Sum of discounted costs (0.15): $1,152,296.

Benefit Cost Ratio (0.05): 0.03

Benefit Cost Ratio (0.1): 0.03

Benefit Cost Ratio (0.15): 0.03

Return On Investment (0.05): 0.01 Return On Investment (0.1): 0.01

Return On Investment (0.15): 0.01

Payback period (0.05): 0

Payback period (0.1): 0

Payback period (0.15): 0