4. Construct a table showing the first-year costs, annual costs, and the annual benefits for the following investment proposal:

Costs: Initial investment (software, hardware, implementation) $250,000, incurred in year zero. Software maintenance (starting in year two) $35,000 per year, increasing at a rate of 3% per year thereafter

Benefits: Labor savings $140,000 per year, starting in year two Equipment savings $25,000, year one only. Increased clinic revenue, $85,000 per year, starting in year one. All yearly savings increase at the rate of inflation, assumed to be 3% per year.

Calculate the Net Present Value of this proposed investment at the end of the five-year planning cycle using a discount rate of 5%. Show your work. Assume that one-time costs are incurred in year zero, and annual costs and savings are incurred in years 1 through 5.