2 Systems Analysts 400 hours/ea @ $50/hour

4 Programmer Analysts 250 hours/ea @ $35/hour

1 GUI Designer 200 hours/ea @ $40/hour

1 Telecommunications Specialist 50 hours/ea @ $50/hour 1 System Architect 100 hours/ea @ $50/hour

1 Database Specialist 15 hours/ea @ $45/hour

1 System Librarian 250 hours/ea @ $15/hour

Development Costs: Training 4 team members need Oracle training registration @ $3,500/person

Development Costs: New Hardware and Software 1 Development server $18,700

1 Server software (OS, misc.) $1,500 1 DBMS server software $7,500

7 DBMS client software $950/client

Annual Operating Costs Personnel:

2 Programmer Analysts 125 hours/ea @ $35/hour

1 System Librarian 20 hours/ea @ $15/hour

Annual Operating Costs: Hardware, Software, and Miscellany

1 Maintenance agreement for server $995

1 Maintenance agreement for server $525

Pre-printed forms 15,000/year @ $0.22/form

The benefits of the new system are expected to come from a few sources: data consistency, increased integration with suppliers, and improved security. These benefits are estimated to be $62,000 in the first year of the systems operation and will grow at a rate of 10% each year thereafter. An additional benefit from the system is based on lower inventory levels (due to improved integration). Savings from lower inventory levels are expected to be $30,000 per year for each year of the projects life. Using a format similar to the cost-benefit analysis spreadsheet that summarizes this projects cash flow and assuming a five-year useful life after the project is developed, develop a cost-benefit analysis of the project. Compute the present value of the cash flows using an interest rate of 9%.