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.cb LOTS ANNUAL OPERATING BUDGET

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#. Amortization					→α$50,000
#. Maintenance					  →36,000
#. Terminal rent				  →21,000
#. Salaries					  →69,000
#. Supplies					  →35,000
#. Miscellaneous and Stanford services		  →14,000

Total					 	→α$225,000

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The above items are explained as follows:

#. Assuming 6α% interest, this rate of amortization reduces
a α$400,000 investment to α$127,820 residual value in eight
years.  This is approximately the amortization realized on
the 360/67.

#. D.E.C. charges about α$3,000 per month for maintenance of
the proposed configuration.  This doesn't allow for additional
service calls.

#. 32 Decwriter II terminals rented from SCIP at α$52.50 per month
come to α$20,160 per year.

#. This is approximately α$58,000 + 19α% staff benefits.  We may
break it down as follows: Manager and chief programmer α$23,000,
programmer-engineer at α$16,000, secretary with computer
user competence α$9,000, student assistance α$10,000.
These salaries are for people of demonstrated competence in
the work required.  If we hire beginners, they should get less.
  This staff
requires relying substantially on student volunteer help.

#. At present, this is the most uncertain figure.  The largest
component is paper for the printer and terminals, but it also
must cover magnetic tapes, disk packs, printer and Decwriter
ribbons, and miscellaneous supplies.

#. We should send a representative to the DECUS users' organization
which includes other universities.  Miscellaneous university services
including some printing will be required.  Service calls to D.E.C.
outside of regular hours will have to come out of this budget.
Telephone lines will come out of this budget.

	This budget doesn't include site preparation, utilities (assumed
provided by Stanford).  If the display terminal plan works out, a budget
request will be made for it.  An additional terminal cluster may be
requested at some time, and this will require more lines.  The second
RPO6 that was deleted from the original configuration may be requested
later.

	However, the hardware configuration in the original purchase
order will provide good service.  The only possible source of
pressure in meeting the requirements of the courses is in number of
terminals, since the computer power is approximately equal to that
of the 360/67.  This cannot be immediately anticipated, because there
is no good data on how long a student must sit at a terminal to do
his class problems and no data on what hours of the day or night they
will be willing to work.  However, additional terminals can be added
at about α$500 capital cost plus α$52.50 per month rental.  Terminals
in the proposed display system will have higher capital cost but no
rental.  We are proposing eight telephone lines for departments and
others with their own terminals.

	Some details require clarification and further consideration,
but the main features of this budget were approved by the Provost on
June 14.

This draft dated {date} at {time}.