FAS ROI Example:  The Interplanetary Café

Ed Burner, owner of The Interplanetary Café, has just opened up his fifth coffee shop and coffee roasting business in the metropolitan area. The Average Asset Cost for the Interplanetary Café is a high value due to the expensive coffee roasting equipment at each of his five locations. Ed decides, on the advice of his CPA, to purchase FAS solutions to help maintain and grow his ever expanding coffee empire.

The Interplanetary Café's savings in the first year alone were as follows:

Assumptions:
  Total Cost of Depreciable Fixed Assets:
  Number of Assets:
  Average Asset Cost $4,000
  Total Cost of Ghost Assets $240,000
  Tax Rate - Federal & State 0.36
Calculations:
  Potential Federal & State Overpayment* $34,560
  Potential Personal Property Tax Overpayment $5,712
  Potential Insurance Overpayment $2,400
  Total Potential First Year Savings $42,672 
Return On Investment:
  Estimated Software Cost
Enter Estimated Software Cost
  Total Savings $39,172
  Payback Period Immediately
  
*Not applicable to government, school, and nonprofit organizations

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