James is working to develop a preliminary cost$-$benefit analysis for a new client$-$server system. He has identified a number of cost factors and values for the new system, summarized in the following tables:

Development Costs $$ Personnel

$1.2$ Systems Analysts $400$ hours$/$ea @ $$50/$hour

$2.4$ Programmer Analysts $250$ hours$/$ea @ $$35/$hour

$3.1$ GUI Designer $200$ hours$/$ea @ $$40/$hour

$4.1$ Telecommunication Specialist $50$ hours$/$ea @ $$50/$hour

$5.1$ System Architect $100$ hours$/$ea @ $$50/$hour

$6.1$ Database Specialist $15$ hours$/$ea @ $$45/$hour

$7.1$ System Librarian $250$ hours$/$ea @ $15/$hour

Development Costs $$ Training

$8.4$ Oracle training registrations $$3,500/$registration

Development Costs $$ New Hardware$/$Software

$9.1$ Development server $$18,700$

$10.1$ Server software $($OS$,$ misc.$)$ $$1,500$

$11.1$ DBMS server software $$7,500$

$12.7$ DMBS client software $$950/$client

Annual Operating Costs $$ Personnel $(5\%$ increase each year $$ starting the $1$st year$)$

$13.2$ Programmer Analysts $125$ hours$/$ea @ $$35/$hour

$14.1$ System Librarian $20$ hours$/$ea @ $$15/$hour

Annual Operating Costs $$ Hardware, Software, and Misc. $($starting the $1$st year$)$

$15.1$ Maintenance agreement for server $$995$

$16.1$ Maintenance agreement for DBMS $$525$

The benefits of the new system are expected to come from two sources: increased sales and lower inventory levels. Sales are expected to increase by $$30,000$ in the first year of the system$$s operation and will grow at a rate of $10\%$ each year thereafter. Savings from lower inventory levels are expected to be $$15,000$ per year for each year of the project$$s life.

Develop an Excel spreadsheet that summarizes this project$$s cash flow for the cost$-$benefit analysis, assuming a four$-$year useful life after the project is developed. See the example of the cost$-$benefit analysis below. Compute the present value of the cash flows, using an interest rate of $9\%,$ and then type your answers to the following questions in a Word document.

$1.$ What is the NPV for this project?

$2.$ What is the ROI for this project?

$3.$ What is the break$-$even point?

$4.$ Should this project be accepted by the approval committee?