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Fixed Cost Assumptions

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Financial Considerations

    Fixed Costs

    Variable Costs

    Payback Period

    Make vs. Buy

    Cost/ROI Assumptions

A $10,930 capital investment

  • $6,000 for AutoCaption
  • $1,400 for a Windows 2000® computer with 512Meg RAM, 3.0 GHz Pentium CPU and monitor (Note: on the secondary market Windows 2000® is less expensive than XP® or Vista®)
  • $2,500 for a VHS/SVHS VTR with a built-in time code reader and RS-422 remote control port.  Note: While a home VCR and AutoCaption's non-linear media management is sufficient for most tasks, we're including a commercial unit for this exercise.
  • $30 for cables

One year depreciation & office space deducted

In our earlier ROI calculations we posted $3,866 annually for system depreciation and office space.  In the break-even exercise we further assumed the work is done within one year and therefore deduct $3,866.

This first day charge of $3,866 accounts for the break-even cost line not intersecting 0 hours when no captioning is done.

Important Legal Notice:  Information herein is based on generalizations, estimates, and educated guesses.  Your actual experience may vary, so it is important to perform and rely on your own management analysis.

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