Question 1 [2 points]:

What is the total labor cost of development?

Question 2 [2 points]: What is the total expense of this project projected to be for the first 5 year period?

Question 3 [2 points]: What is the total benefit projected to be for the first year?

Question 4 [2 points]: What is the total benefit projected to be for the first five years?

Question 5 [2 points]: Given ROI % = ((Benefit Cost) / Cost)*100, what is the 5 year ROI for this project?

Question 6 [2 points]: If the company could just put the money to cover the project expenses in the bank (instead of doing this project) it could make an investment gain of 5% (total) over this same 5 year period. Should the company invest in this project, or put the money in the bank? Why?

Question 7 [4 points]: Describe in your own words BRIEFLY why APO05 and APO06 are important to project funding selection based on ROI calculation.

You have been asked to calculate the Return on Investment (ROI) for a project whose development will be accomplished during a single calendar year with the go-live date of Jan1st The project, to develop a new Web-based ordering and fulfillment system, has already been conceptualized, and the team has provided estimates and a partial resource plan. Labor Operating expenses in years 2 through 5 are projected to be $37,000 annually. Miscellaneous expenses in years 2 through 5 are projected to be $6,500 annually. The benefit is projected to be $260,000 the first year of operation, increasing 7% each year. Hardware cost that would be installed for development is $115,000. You'll need to complete the resource plan, the 5 year planning sheet, and calculate a 5 year ROI. Please finish filling out these tables and answer the associated questions