3.5.1.3 Cost for CBM-NET Applications Development and Relevant Equipment 3.5.1.3.1 Method for Cost Estimation Cost for CBM-NET applications development and relevant equipment comprises three elements, which refer to equipment, maintenance fees, and installation. Although CBM-NET applications are software, these are classified as “equipment” just as with physical machines and parts. The total cost is estimated by accumulating the required cost to develop each function of CBM-NET and other expenses relevant to system development. Installation costs include the expenses required for supporting the test done by CBM and executing migration from the current environment. Maintenance fee costs include the expenses required for getting the product support for three years after the system handing over to CBM in addition to the expense for development period. 3.5.1.3.2 Estimated Cost Costs for CBM-NET development and relevant equipment amounts to approximately JPY 2.58 billion and are as described in the following table: Most of the cost is allocated as the equipment cost, which is the software development cost. Table 3-39 Cost for CBM-NET development and relevant equipment Item Calculation TOTAL (procurement and construction) (1)+(2) 2,558 (i)+(ii)+(iii)+(iv) 2,558 (1) Purchase (i) Equipment Amount in JPY million 2,371 (ii) Installation 187 (iii) Procurement management 0 (2) Administrative expense 0 Source: Preparatory Survey Team 112