Assume that you are working on a software development project and want to collect the data for
the feasibility study. This project will be completed in 2021. The software will be used
from 2022 to 2027.
- The data you have collected for the feasibility study are listed below:

Development costs
4 Servers @ $115,000: $460,000
Printers: $30,000
Software Licenses: $3600
Server Software: $11,000
Development Labor: $4,200,000

Annual operation costs
Hardware: $65,000
Software: $45,000
Operation Labor: $140,000 in 2022, and will grow at a rate of 5% each year thereafter.

Benefits
Reduced in Customer Complaint Calls: $280,000
Reduced inventory Costs: $240,000
Increase Sales: $800,000 in 2022 and will grow at a rate of 4% each year thereafter.

Create a worksheet and calculate the followings
- Calculate the total costs and benefits of each year
- Calculate the total costs and benefits of each item
- Calculate the total costs and benefits of the project
- Calculate the PV total benefits and PV total costs, assume the interest rate = 6%
- Calculate yearly net cash flow and cumulative net cash flow
- Calculate ROI and Break-even point
- Calculate NPV
- Tell if it is feasible to employ this project based on ROI