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1. (10 points) As a project manager, you have been asked to evaluate the feasibility of the following proposed acquisition: Your organization is considering the
1. (10 points) As a project manager, you have been asked to evaluate the feasibility of the following proposed acquisition: Your organization is considering the purchase of an automated Emergency tracking system. Proposed costs are as follows: S S Hardware Software Software maintenance (annual) Training Implementation S S $ 50,000 200,000 30,000 55,000 75,000 Software maintenance will start in year two and will be incurred annually. All other costs are incurred in year "zero". Your analysis projects the following benefits to be expected annually (and subject to inflation) starting in year 1: $ S 250,000 80,000 Labor savings Non-labor savings Reduced malpractice premiums Increase in business $ $ 40,000 50,000 Construct a table showing the investment, and showing costs and benefits for five years. Use an assumed inflation rate of 3% for all annual costs and benefits. Use a discount rate of 5%. Show the Net Present Value of the proposed investment every year for five years. Are any of the benefits operational, or should some benefits be considered tactical or strategic benefits
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