COST BENEFIT ANALYSIS $($ROI and NPV$)$ TEMPLATE FOR SOFTWARE PROJECTS Develop a cost$-$benefit analysis for Fast Parts Delivery Store$$s information system upgrade project. The project team, including upper management, at Fast Delivery Parts Store have identified a number of cost factors and values for the new information system. They are looking to you to tell them if the the benefits of the information systems upgrade project will outweigh the project$$s costs.

Step $1$: Download the Cost$-$Benefit Analysis Template.

Step $2$: Examine the following list of cost factors and summary of values for the new information system. If necessary, re$-$read the Fast Delivery Parts Store scenario.

Step $3$: Complete the Cost$-$Benefit Analysis Template using information from the provided scenario.

Step $4$: Submit your completed Cost$-$Benefit Analysis Template as a $.$xls or $.$xlsx file.

Development Costs: Personnel

$2$ 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\mathrm{.}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 $$62,000$ in the first year of the system$$s 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 $$30,000$ per year for each year of the project$$s life. Using a format similar to the cost$-$benefit analysis spreadsheet $($given in the resources$)$ that summarizes this project$$s 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 $9\%.$ What is the NPV for this project? What is the ROI for this project? What is the break$-$even point? Based on the economic analysis, should this project be approved to proceed further?

What is wrong with the way that was calculated? The ROI is supposed to $185$k apparently. I know the cumulative NPV and ROI and break even is probably wrong, but i can't figure out if the benefits are incorrect too, like if they should start as $30$k$+15$k or $62$k$+30$k$.$