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

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:

$4$ Oracle training registration $-$ $$3,500/$student

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 Misc. :

$1$ Maintenance agreement for server $-$ $$995$

$1$ Maintenance agreement for server $-$ $$525$

DBMS software

Preprinted forms $-15,000/$year @ $$\mathrm{.}22/$form

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.

Using a format like the spreadsheets, develop a spreadsheet that summarizes this project's cash flow, assuming a $4-$year useful life after the project is developed. 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? Should this project be accepted by the approval committee?