Tiershey is working to develop a preliminary cost-benefit analysis for a new client- server system. She has identified a number of cost factors and values for the new system, summarized in the following tables. 400 hours/ea @ $50/hour 250 hours/ea @ $35/hour 200 hours/ca @ $40/hour Development Cost- Personnel 2 System Analyst 4 Programmer Analyst 1 GIU Designer 1 Telecommunications Specialist 1 System Architect 1 Database Specialist 1 System Librarian 50 hours/ea @ $50/hour 100 hours/ea @ $50/hour 15 hours/ca @ $45/hour 250 hours/ea @ $15/hour Development Costs- Training 4 Oracle training registration. $3500/student Development Costs-New Hardware and Software 1 Development server $18,700 1 Server software (OS,misc.) $1500 1 DBMS server software $7500 7 DBMS client software $950/client Annual Operating Costs- Personnel 2 Programmer Analyst 1 System Librarian 125 hours/ea @ $35/hour 20 hours/ca @ $15/hour Annual Operating Costs - New Hardware, Software and Misc. 1 Maintenance agreement for server $995 1 Maintenance agreement for server $525 DBMS software Preprinted Forms 15,000/year @ $2.22/ 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% cach year thereafter. Savings from lower inventory levels are expected to be $15,000 per year for cach year of the project's life. (a) Using a format similar to spreadsheet in this chapter, develop a spreadsheet that summarizes this project's cash flow, assuming a four-year useful life after the project is developed. Compute the present value of the cash flows, using an interest rate of 9%. (b) What is the NPV for this project? (c) What is the ROI for this project? (d) What is the break-even point? Should this project be accepted by the approval committee? (c)