The Halls Gap Wildlife Park offers a unique Australian wildlife experience. The park offers a scenic...

The Halls Gap Wildlife Park offers a unique Australian wildlife experience. The park offers a scenic comfortable nature walk around the facilities, with the chance to get up close and personal to some of Australia’s most famous native animals. With over 100 kangaroos roaming free, around the park, there is an opportunity to experience hand feeding these amazing animals. Visitors also have a chance to interact with koalas, wombats, and a variety of reptiles ranging from snakes to lizards and even a giant tortoise. Visitors can enjoy lunch in a fully licensed cafe or bring along a picnic to have on an outdoor table and chairs, surrounded by the kangaroos. And while at the park, visitors can experience a special offer ‘Animal Experience’, which is a unique photo with an animal, professionally taken as a souvenir to take home. Halls Gap Wildlife Park Pty Ltd is managed by director Ed O’Neill. Currently O’Neill promotes the Halls Gap Wildlife Park via a website, community noticeboards and advertising in local newsletters. O’Neil wishes to tap into a wider market through the creation of a mobile app designed to promote and grow the Halls Gap Wildlife Park. The app should also manage entrance fees, facility hire and range of other services such as animal feeding, animal handling lessons, animal sponsorship and sales of wildlife apparel at the onsite store. You have been working for Winchester Software Inc. casually for the last three months in their mobile app development department. As a virtual team specialist, your company has applied for a tender to develop the app for Halls Gap Wildlife Park Pty Ltd. Due to the importance of this project the CEO of Winchester Software Inc, Dean Winchester, and the Director of Mobile Development Rowena McLeod have both made this project a priority. The initial investment in the project is estimated to be $100,000 in year 0 of the project, $10,000 in year 1, $10,000 in year 2, and 6,000 in year 3 a total of $126,000. Winchester Software Inc. requires a discount rate of 6%. It is anticipated project future cash inflow as follows (Years 0 to 3): $0, $70,000, $100,000, and $145,000, a total of $315,000 The project will be expected to make at least a 20% ROI, to conform to the Winchester Software Inc, business model. The goal of the project is to propose an app, which is optimised for iPhone and Android devices. The app should allow users to subscribe and pay for access to a database of information about Australian wildlife animals, including details of habitat, dietary requirements, breeding, photographs and video. Users will be able to book individual or group tours. Readers should be able to subscribe to the Halls Gap Wildlife Park newsletter and related upcoming events. There should be access charts detailing the all the park’s walks. The app should provide users with an ability to provide an overall ranking of Halls Gap Wildlife Park in terms of quality of information and services. Management believes it will take about three months (12 weeks) with a budget of $126,000 for this important project. Winchester aims for a budget contingency reserve of at least 10%. Dean Winchester and Rowena McLeod have formed a search committee to find the best candidate for managing the Halls Gap Wildlife Park App Project. After reviewing many strong candidates, they decided to appoint you, to put together the business case for this critical project. Your previous job was with a consultancy firm where you successfully implemented several android application development projects for medium sized enterprises, using virtual teams. Since this is a high priority project that should be completed in three months, they felt it was appropriate to get the best candidate to put together a quality business case and project management plan. They are offering a base rate for your contract at $100 p/hr for 1 d/wk, but a lot is at stake, Halls Gap Wildlife Park and similar businesses are likely to request further mobile app development projects. Winchester and McLeod propose to be joint project sponsors, and have handpicked Jack Kline, to be the main internal IT liaison and Sam Winchester to be the Halls Gap Wildlife Park liaison. They will let you as the new project manager form the rest of the project team if the tender bid is successful. In order to get the app developed in the time frame you propose to use Royce’s well known waterfall development approach. It is anticipated the requirements and operations phases will take one week each, while the analysis design and testing phases will take 2 weeks each, and the coding phase approximately 4 weeks. Your team consists of two programmers and a digital image specialist. The three team members will spend the equivalent of half a day a week on project management related activities (e.g. completing status reports and attending meetings etc.) and the remaining 4.5 days on development. They will be paid at a rate of $70 p/hr. You will also need to access to a wildlife consultant (Jody Mills). The consultant and liaison pay rates are negotiable and will only be required for a maximum of one week. You anticipate several challenges if this tender bid is successful. Winchester Software Inc originally focused on developing game-based learning apps for kids, but the CEO, Dean Winchester, has emphasised the need to increase profits by tapping into other markets, including wildlife and zoo projects. The type of people who work on kids learning projects are often different from people working on the new sports marketing projects. They often have different educational backgrounds, skill sets, and ideals. Most of the people hired in the past year have been hired to support these new markets. The plan is to roll out review existing information, conduct research and gather new material. Detailed storyboards, image catalogue, a prototype, alpha, beta and final version of the app will developed. The app will need to be tested, and promoted prior to roll out. The project will be considered a success, if it comes in on time, on budget, within scope and key stakeholders have been pleased with the communication and reporting processes.

Q. Need to prepare financial analysis (npv, roi and payback figures) , budget estimate (cost model and baseline) ,schedule estimate including work breakdown structure level 3 IN AN EXCEL SHEET.

Homework Answers

Answer #1


1. Financial Analysis

a. NPV - Net Present Value - PNV gives the present value of the future cash flows.

Year 0 1 2 3
Estimated Cash Outflow -100000 -10000 -10000 -6000
Estimated Cash Inflow - 70000 100000 145000
Net Cash Flow -100000 60000 90000 139000

Discout rate given - 6 %

Using NPV Formula -

NPV = $ 144,727

b. ROI - Return on Investment

Total Investment made in three year = $126,000

Total expected gain in three years = $145,000

ROI = Profits/Cost of Investment = $189,000/$126,000

RIO = 50%

Year Estimated Cash Outflow Estimated Cash inflow Cumulative Cash Flow
0 -100000 - -100000
1 -10000 70000 -40000
2 -10000 100000 50,000
3 -6000 145000

Payback period is 2 years.

Taking a gander at the NPV, ROI and Payback period, the undertaking is giving impressive returns than the normal ought to be taken up for the venture.

2. Spending Estimates for the Application Development -

Venture Manager - 01 no's

Working Schedule - one day in seven days

Working hours - 8 hrs.

Working hours in seven days = 8 hrs.

All out working hours for 12 weeks = 8*12 = 96 hrs.

Rate - $100 per hrs.

All out Cost of Project Manager = 96*100 = $9600

Group = 3 no's

Working Schedule = 5 days in seven days

Working hours in a day = 8 hrs.

All out working hours in 12 weeks = 8*5*12 = 4800

All out working long periods of group = 4800*3 = 1440

Rate = 70 for every/hrs.

All out Cost of the group = 1440*70= $100,800

All out cost (Project Manager + Team)= $9600+$100,800 = $110,400

Spending plan gave = 126,000

Consultant cost and contact cost can be made do with balance accessible spending plan.

3. Scheduled Estimates and Work Breakdown structure

Week 1 - Requirement gathering

Week 2 - Understanding activities and show up at work process or cycle stream to join in the application

Week 3 and 4 - Analysis

Week 5,6,7 and 8 - Coding

Week 9 and 10 - Testing

Week 11 - Alfa and Beta adaptation of the application

Week 12 - Roll out

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