Wen-Ching is working to develop a preliminary cost-benefit analysis for a website to support the leasing department at a major university. She developed the following estimates. Development costs Personnel 2 Systems Analysts 350 hours each at $80/hour 2 Agile Programmer/testers 350 hours each at $70/hour 1 Web designer 100 hours at $125/hour 1 Telecom specialist 20 hours at $150/hour 1 Database specialist 110 hours at $100/hour Development costs Training 2 interactive training seats $3000/student Development costs Hardware and Software 1 Development Server $2500 8 DBMS client licenses $250/client Annual operating costs Personnel 1 Programmer/analyst 300 hours each at $65/hour Annual operating costs Hardware, software, misc. 1 maintenance agreement, server $995 1 maintenance agreement, DBMS $525 The benefits of the new system are expected to come from two sources: increased occupancy and ability to charge additional rent due to convenience. The benefit from occupancy is expected to total $30,000 in the first year of the systems operation, and will grow at a rate of 10% per year. Rental increase is expected to realize $15,000 per year. Assume that personnel costs rise at 4%/year. Following the model presented in the lecture, develop a spreadsheet that summarizes the projects cash flow, assuming a four-year payback period after the project is developed. Following the model presented in the lecture, compute the present value of the cash flows using an interest rate of 4%. 1. What is the ROI? 2. What is the break-even point? 3. What is the NPV for this project? 4. Should this project be approved?