You are helping the IT team at Game Technology study several software acquisition options for their Customer Contact Care system (C³). First, you review Chapter 7 of your systems analysis textbook and the material on financial analysis tools (templates are available on Moodle). The IT team is considering two commercial software packages and an in-house development option. They prepared the following summary:

Option	Description	Costs	Benefits
Software Solutions, Inc.	Software package Four-year useful life Less flexible than in-house system Some customizing needed	$8,000 to purchase $2,000 to install and configure $3,000 to load existing data $1,000 additional hardware needed $3,000 annual support fee	$8,000/yr. through positive customer response. Cannot predict other specific savings. Increased sales, improved customer care, and better productivity are expected.
CRM Corp.	Software package six-year useful life Less flexible than in-house system Moderate customizing needed Runs slower than other options	$7,000 to purchase $1,500 to install and configure $2,200 to load existing data $4,000 additional hardware needed $1,500 annual support fee	$8,000/yr. through positive customer response. Cannot predict other specific savings. Increased sales, improved customer care, and better productivity are expected.
Develop C3 system in-house	In-house system five-year useful life, can use our software and hardware Easiest to update and maintain	$18,000 to develop, install, and configure $2,500 to load existing data Existing staff can handle support	$8,000/yr. through positive customer response. Cannot predict other specific savings. Increased sales, improved customer care, and better productivity are expected.

1. (15 pts) Perform ROI and NPV (Use an 8% discount factor) analysis of all three software development options. Please use the Excel templates on Moodle; each calculation should be on a single worksheet. Provide SIX worksheets with appropriate titles on the tabs; highlight the result on each worksheet.

2. (5 pts) Use the results to make two BAR/Line charts one for ROI, one for the NPV; both charts should contain the comparisons of the three options.

3. (5 pts) Based on the charts, draw a conclusion on the FIRST WORKSHEET (i.e., ROI and NPV) of which option to choose from SSI, CRM Corp, or C³.