As the IT manager of the company, you need to evaluate both proposals and make an informed decision so that the company is investing in the best project for the company. 1** proposal Year 0 1 3 12,000 12,000 7,300 Discount rate - 13% Item Cost displacement Hardware cost License fee Maintenance fee Performance enhancement Risk reduction Software cost Staff training Server room renovation 6,000 8,100 42,000 5,900 2 12,000 5,000 6,000 8,100 33,000 5,900 6,000 8,100 18,000 5,900 31,800 6,000 8,500 2,000 2,000 2,000 2nd proposal Discount rate=10% Year 0 1 2 3 Total 27,500 24,000 16,700 12,000 Costs Discount factor Discounted costs 42,000 30,000 24,000 Benefits Discount factor Discounted benefits Discounted (benefits-costs) Cummulative (benefits-costs) a) Calculate the NPV, ROI and payback period (in months) for the 1st proposal. (2m) b) Calculate the NPV, ROI and payback period (in months) for the 2nd proposal. (2m) c) Provide justification to support the 1st proposal. (1m) d) Provide justification to support the 2nd proposal. (1m)