You are asked to conduct a five$-$year $($Year $0$ to Year $4)$ economic feasibility study. Based on the project schedule, you conclude that the system will not be in operation during the current year $($Year $0).$ Once the system is operational in the following year $($i$.$e$.$ Year $1),$ you expect annual increased sales of $$50,000$ and inventory cost reduction of $$14,000($each year there is $$50$k cash in from increased sales and $14$k in savings from reduced inventory$).$ You also estimate that the system benefit will increase $$3,000$ annually $($from the previous year$)$ from Year $2$ through Year $4.$

New computer costs $$10,000$ and the development cost is estimated to be $$77,500($both incurred in year $0).$ The software license renewal and supplies will be $$23,000$ annually from Year $1$ on$.$ The initial personnel cost $($incurred in Year $1)$ for hiring and training operators is $$12,000,$ which will increase annually at a rate of $4\%$ thereafter.