as the new Terminal 2 credentialing system, but she needed to develop a business case quickly that would substantiate the feasibility of the purchase.

Given the time constraints, Kim Dickie decided to outsource the task of developing a business case to an external consultant (You). To facilitate the analysis of Return-on-Investment (ROI) into Quantum Secure’s SAFE software, a junior staff member of your consulting team created a template called ‘ROI_analysis_template.xlsx’.

Your task as a consultant is to use the template prepared by the junior staff member of your consulting team to run ROI analysis, and based on the results, to create a feasibility report that Kim Dickie could present to the senior management of SFO.

The purpose of this assignment is to give you practice in developing a business case for senior management, that would provide an independent opinion on whether it is feasible for the company (SFO) to invest in the new product.

In this individual assessment, you will have to show your understanding of how return-on-investment (ROI) calculations work, with an emphasis on identifying incremental effects. You are expected to decide how to use results from similar entities making similar purchasing decisions to estimate the incremental benefit of a proposed solution. To address this goal, you will have to identify and use the best data available in making assumptions. It is important to note that certain decisions in this assessment piece will require your judgement rather than a simple ‘search & input’ exercise. You will the have to substantiate your choices in the report for senior management.

In terms of the learning outcomes shown in the unit guide, this assessment task tests your achievement of all objectives of this unit, i.e.:

Objective1: examine the role of business processes and the use of accounting information systems in capturing and managing information that support the needs of stakeholders;

Objective2: analyse and evaluate the design of business processes and accounting information systems;

Objective 3: explain the importance of internal controls and recommend internal controls that cover key business processes and support the achievement of goals;

Objective 4: synthesise design principles to develop financial models that assist in decision making (this objective is covered only to a certain extent as you are not supposed to design a financial model per se, but to populate an existing model with the data from the case (sometimes using your judgement) and to use the resulting model for the purposes of analysis and decision making);

Objective 5: apply problem solving and communication skills to analyse, evaluate and interpret accounting data.

1. Determine the correct inputs into the Quantum Secure ROI Calculations Spreadsheet (use the file xlsx).
2. The cells of the spreadsheet have been protected by the junior member of your consulting team to prevent them from altering the formulas that are set up to streamline When filling in the spreadsheet, you were advised by the member of your team to focus on inputting those cells with double-line borders and a grey fill. When inputting figures into those cells, they should appear in blue italicised font, you’ve been told, and the green font cells will automatically recalculate based on their inputs.

While you are generally happy to follow those rules for the sake of time, and concentrate on ROI calculation based on the material presented in the case, you decide to check the calculations in the logic of the template once again. Hence, before populating the template you run a quick check to notice that while the formulas used to calculate each line of savings seem to be correct and properly implemented, you have certain doubts for the last section of the spreadsheet (raws 59-64). You have a clear sense that something is not quite right in this section of the spreadsheet, so the first thing that you put in your diary is to double-check whether this part of the spreadsheet contains any errors (you will have to do it before moving to the next part of the spreadsheet).

3. After the spreadsheet is checked, you are required to populate the entries into the spreadsheet based on your knowledge of the business case, communicated to you by Kim A complete account of the background knowledge available to you can be found by following this link:
4. Based on the results obtained in your ROI analysis, you are required to produce a feasibility analysis report, structured around the expected labour cost savings, material cost savings, recordkeeping accuracy savings, and increased compliance and compatibility cost savings expected after the Quantum Secure’s SAFE software suite is The following bottom-line measures (from the spreadsheet) would be also highly useful in making up the business case:
   • Total Cash Outflows for Purchase
   • Total Savings from Purchase
   • Net Cash Flow from Purchase
   • Discounted Cash Flow from purchase
   • IRR from Purchase
   • NPV of Purchase