3. A new registration system for the university is being considered. The acquisition (development) cost is $0. For the life of the system (5 years), the estimated operating costs are $20,000 per year and the estimated benefit is $20 per student per year.

a. Consider the acquisition cost as a sunk cost. How many students are required to register per year to pay the fixed operating costs? Per semester?

b. Calculate the break-even point, number of students per year to pay for the system in its lifetime. (Discount rate = 0.0).

c. Calculate the Profit per year if the university has 1000 students, 5000 students.

d. Calculate the lifetime ROI, if the university has 1000 students, 5000 students. (Discount rate = 0.10).