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 Analvsis 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 GUl Designer 200 hours/ea \& $40 /hour 1 Telecommunications Specialist 50 hours/ea @ $50/ hour 1 System Architect 100 hours/ea @ \$50/hour 1. Database Speciatist 15 hours/ea @ \$45/hour 1 System Librarian 250 hours/ea @ \$15/hour Annual Operating Costs: Personnel 2 Programmer Analysts 125 hours/ea @ $35/ hour 15y stem Librarian 20 hours/ea 6 \$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 berefits 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 thie project's life. Using a format similar to the cost-benefit analysis spreadsheet (given in the resources) that sammarizes this project's cash flow and assuming a five-year useful life after the project is developed, develop a costbenefit analyais 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? Format Enable Editing x I COST BENEFIT ANALYSIS (ROI and NPV) TEMPLATE FOR SOFTWAAE PHOJECTS 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 Analvsis 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 GUl Designer 200 hours/ea \& $40 /hour 1 Telecommunications Specialist 50 hours/ea @ $50/ hour 1 System Architect 100 hours/ea @ \$50/hour 1. Database Speciatist 15 hours/ea @ \$45/hour 1 System Librarian 250 hours/ea @ \$15/hour Annual Operating Costs: Personnel 2 Programmer Analysts 125 hours/ea @ $35/ hour 15y stem Librarian 20 hours/ea 6 \$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 berefits 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 thie project's life. Using a format similar to the cost-benefit analysis spreadsheet (given in the resources) that sammarizes this project's cash flow and assuming a five-year useful life after the project is developed, develop a costbenefit analyais 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? Format Enable Editing x I COST BENEFIT ANALYSIS (ROI and NPV) TEMPLATE FOR SOFTWAAE PHOJECTS