System Analysis Phase - Development Strategies [35 marks] Conduct cost-benefit analysis to determine if the information system development project described below should proceed. Simon is considering building an information system for his business - Simon's Pizza and Pasta Take-Away to manage its daily operation. The information system takes 12 months and $34K to develop and install. It also requires a network upgrade which costs $15K. Staff training can be conducted during the system's development and the cost is $3K. After installation, the system can start its normal operation immediately. The cost to maintain its normal operation is $2K annually. The system can be used for 7 years, and it generates $9K of salary saving and $2K intangible benefit in the first year of its operation. The salary saving increases each year by 10%. The intangible benefit remains the same in the following years. (1) Conduct the Payback Analysis to find the payback period for the project (2) Calculate the Return of Investment (ROI) for the project (3) Assume the annual interest/discount rate is 5%, calculate the present value of a future dollar and fill the form below. 1.0 Year 0 1 2 3 4 5 6 7 (4) What is the project's net present value at the end of the 7th year