Add in the following statement when you calculate the Personnel annual operating costs: 4% increase is considered for the following years

4 Martin is working to develop a preliminary cost-benefit analysis for a new client-server system. He has identified a number.of cost factors and values for the new system, summarized in the following tables Development Costs-Personnel 2 Systems Analysts 4 Programmer Analysts 1 GUI Designer 1 Telecommunications Specialist 1 System Architect 1 Database Specialist 1 System Librarian Development Costs-Training 4 Oracle training registration Development Costs-New Hardware and Software 1 Development server 1 Server software (OS, misc.) 1 DBMS server software 7 DBMS client software Annual Operating Costs-Personnel 2 Programmer Analysts 1 System Librarian Annual Operating Costs-Hardware, Software, and Miso. 1 Maintenance agreement for server 1 Maintenance agreement for server DBMS software Preprinted forms 400 hours/ ea @ $50/hour 250 hours/ ea @ $35/hour 200 hours/ ea @ $40/hour 50 hours/@ $50.hour 100 hours/ ea $50/hour 15 hours/@ $45 hour 250 hours/ ea @ $15/hour $3500/student $18,700 $1500 $7500 $950/client 125 hours/ ea $35/hour 20 hours/ sa $15/hour $995 $525 15,000 year @ S.22/form The benefits of the new system are expected to come from two sources: increased sales and lower inventory levels. Sales are expected to increase by S30,000 in the first year of the system's operation and will grow at a rate of 10% each year thereafter. Savings from lower inventory levels are expected to be $15,000 per year for each year of the project's life Using a format similar to the spreadsheets in this chapter, develop a spreadsheet that summarizes this project's cash flow, assuming a four-year useful life after the project is developed. Compute the present value of the cash flows, using an interest rate of 9% What is the NPV for this project? What is the ROI for this project? What is the break even point? Should this project be accepted by the approval committee