R-Language Through The Cloud Projected revenues.

Projected revenues
For the desktop applications that we have studied, we were able to find out that students are charged according to the time they spend accessing the program. In developed countries, students who access and use R-Language program use it for 6 hours per day for three times a week. Each hour, a student is charged 60 AED. This will mean that student will be charged 360 per day. In these countries, students who use these services are estimated to be 8 per day. For a whole day, the revenue will be 2880 AED. Per week, the total cost will be 14,400 AED translating to 748,800 AED per year. The estimated profit will therefore be 700,000 AED. It is also projected that with intensive marketing, as outlined in the marketing paper, it is expected that the service use will increase. There will be more students who will be interested in this venture as time goes by.

Year
Predicted number of students using R-Language

1
3120

2
4000

3
4800

4
6000

5
8000

 
After the system has been setup, it is expected that the cash flow from the service rendered to mathematicians and researchers will be shown as follows:

Year
Predicted Revenue

0
-1,124,000 AED

1
187,200

2
240,000

3
288,000

4
360,000

5
480,000

Net Profit
431,200

 
The net profit that is shown in the table above still has not factored in the annual maintenance fee and the license fee for the programming languages. Subtracting these costs, that are 1500 and 10,000 AED respectively, we get 419,700 AED. The return on investment therefore comes to 37.3%.

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