Complete the following:

Project's financial information The project is expected to cost the company $1,150,000 for the web application development and $750,000 for web and database servers. The project is expected to take 6 months to complete. They believe that this application will help improve their employees' health after a year of its rollout so that the company can negotiate lower healthy insurance premiums, providing a net saving of at $500 per employee per year for full time employees and $250 per employee per year for part-time employees over next five years. The company does not expect any savings in employee healthcare premiums for the first two years when the application will be up and running. A yearly budget of S350,000 has been set aside for the next five years for system maintenance. A new role "Application Support Engineer" has been created with the responsibility to work with the software engineering team to develop the application and to provide on-going application support after the roll out of the application. This role will cost the company $100,000 with a 6% yearly increase in the annual salary. Assume that the discount rate is 7%. Task 1: Business case financial anaylsis (15 marks 1.1 You are required to prepare a financial analysis up to year 5 using the table provided below for the MYH's project in order to find the return of investment (ROI) and payback period of the project based on the financial information provided. (7 marks) Discount rate 7% Year1 Year 2 Year 5Total PROJECT 1 Year 0 Year 3Year 4 Revenue 0 0.76 Discount Factor 0.93 0.87 0.81 Discount revenue 0 2,000,000456,000 462360 469101 476254483822 Costs 0.71 Discount factor 0.93 0.87 0.81 0.76 2,000,000 424080402253 379971 361953 343513 3911770 Discount Cost Discount bene 2,000,000-424080402253 Cumulative ben 1.2 Calculate the ROI of the project (3 marks) 1.3 Calculate the payback period of the project (3 marks) 1.4 Justify if the proposed project is worthehile undertaking (2 marks) Project's financial information The project is expected to cost the company $1,150,000 for the web application development and $750,000 for web and database servers. The project is expected to take 6 months to complete. They believe that this application will help improve their employees' health after a year of its rollout so that the company can negotiate lower healthy insurance premiums, providing a net saving of at $500 per employee per year for full time employees and $250 per employee per year for part-time employees over next five years. The company does not expect any savings in employee healthcare premiums for the first two years when the application will be up and running. A yearly budget of S350,000 has been set aside for the next five years for system maintenance. A new role "Application Support Engineer" has been created with the responsibility to work with the software engineering team to develop the application and to provide on-going application support after the roll out of the application. This role will cost the company $100,000 with a 6% yearly increase in the annual salary. Assume that the discount rate is 7%. Task 1: Business case financial anaylsis (15 marks 1.1 You are required to prepare a financial analysis up to year 5 using the table provided below for the MYH's project in order to find the return of investment (ROI) and payback period of the project based on the financial information provided. (7 marks) Discount rate 7% Year1 Year 2 Year 5Total PROJECT 1 Year 0 Year 3Year 4 Revenue 0 0.76 Discount Factor 0.93 0.87 0.81 Discount revenue 0 2,000,000456,000 462360 469101 476254483822 Costs 0.71 Discount factor 0.93 0.87 0.81 0.76 2,000,000 424080402253 379971 361953 343513 3911770 Discount Cost Discount bene 2,000,000-424080402253 Cumulative ben 1.2 Calculate the ROI of the project (3 marks) 1.3 Calculate the payback period of the project (3 marks) 1.4 Justify if the proposed project is worthehile undertaking (2 marks)