Use the following format to develop a spreadsheet to analyze the economic feasibility of the project described below. (30 points) The project: A new client-server system. A number of cost factors and values for the new system has been identified and summarized as follows. Development Costs Personnel 1 Systems Analyst 400 hours/ea @ $50/hour 2 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 2 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 4 DBMS client software $950/client Annual Operating Costs Personnel 1 Programmer Analysts 125 hours/ea @ $35/hour 1 System Librarian 20 hours/ea @ $15/hour Annual Operating Costs Hardware, Software, and Misc. 1 Maintenance for server $995 1 Maintenance for DBMS software $525 Preprinted forms 15,000/year @ $.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 $27,000 in the first year of the systems operation and will grow at a rate of 10% each year thereafter. Savings from lower inventory levels are expected to be $12,000 per year for each year of the projects life. Assume a 2-year useful life (2020 and 2021) after the project is developed, an increase rate of 4% of annual personnel costs, and an interest rate of 9%.

2020 2021 Total Benefits Increased Sales Reduced Inventory Total Benefits Present Value Total Benefits Development Costs Systems Analyst Programmer Analysts GUI Designer Telecom Specialist System Architect Database Specialist System Librarian Development Training Hardware Software Total Development Costs Operational Costs Programmer Analyst System Librarian Hardware Maintenance Software Maintenance Preprinted Forms Total Operational Costs Total Costs Present Value Total Costs NPV (PV Total Benefits - PV Total Costs): Should this project be accepted? Why? 2020 2021 Total Benefits Increased Sales Reduced Inventory Total Benefits Present Value Total Benefits Development Costs Systems Analyst Programmer Analysts GUI Designer Telecom Specialist System Architect Database Specialist System Librarian Development Training Hardware Software Total Development Costs Operational Costs Programmer Analyst System Librarian Hardware Maintenance Software Maintenance Preprinted Forms Total Operational Costs Total Costs Present Value Total Costs NPV (PV Total Benefits - PV Total Costs): Should this project be accepted? Why