Chapter 10: Project Initiation RUJIIJ ole Jode' Creative Commons-ShareAlike 4.0 International License [http:Hcreativecommon s.orgilicenseslby-safdl,1. 1. Software project decision point. 1. You need to determine an interest rate to useselect an interest rate and explain why you think this number should be used. Use it in your calculations in item 1.2. 2. Given the information below on options 1 and 2, carry out three forms of analysis: breakeven, ROI, and NPV. 3. Make a recommendation on which way to proceed, based on the TCO for each option. - Option 1: Purchase the FunSoft package: Cost $200,000 for software and $85,000 for hardware in year one: with $50,000 to customize it and a $40,000 annual licensing fee for the life of the contract. - There will be an annual saving of $61 ,000 due to the layoff of a clerk. - Option 2: Purchase the SoftComm package, which will operate on the vendor's hardware: Cost $250,000 for a five-year license. payable halfup front and half during the first year of implementation. The maintenance contract, at $75,000 a year, includes all currently identified modifications to the software for the first three years. The clerk's hours will be cut by half, for a saving of $25,000 a year. In both cases, sales are expected to increase from the current $1 million a year, by 10% per year each year (over each years previous year's sales] after full implementation. Assume a five-year life forthe software. Chapter 12: Scope Planning cc BY SA Available under Creative Commons-ShareAlike 4.0 International License (http://creativecommon S.org/licenses/by-sa/4.0/). 1. A project to put on a major international sporting competition has the following major deliverables: Sports Venues, Athlete Accommodation, Volunteer Organization, Security, Events, and Publicity (which has already been broken down into pre-event publicity and post-event publicity.) Prepare a WBS for any single major deliverable on the list. Remember the 100 percent rule, and number your objectives.Chapter 15: Budget Planning cc BY SA Available under Creative Commons-ShareAlike 4.0 International License (http://creativecommon s.org/licenses/by-sa/4.0/). 1. Wedding cost estimation: Given the following information, calculate the estimated costs for a wedding with 250 guests and a bridal party of six, using the methods indicated. Show your work. Note that members of the bridal party are already counted as guests, you don't need to add them twice. 1. Parametric estimate 2. Bottom-up estimate 3. Analogous cost estimate 4. You will probably notice some differences in the estimated values. Are these differences significant? What might cause the differences? If you were estimating a significant project in the future, which method(s) would you use and why? 5. Your mother points out you should probably have valet parking, which will cost $500. Which estimate(s) will change