Development Costs Personnel 2 Systems Analysts (400 hours/each @ $50/hour) 4 Programmer Analysts (250 hours/ea @ $35/hour) 1 GUI Designer (200 hours/ea @ $40/hour) 1 Telecommunication Specialist (50 hours/each @ $50/hour) 1 System Architect (100 hours/ea @ $50/hour) 1 Database Specialist (15 hours/each @ $45/hour) 1 System Librarian (250 hours/each @ $15/hour

Development Costs Training 4 Oracle training registration ($3500/student)

Development Costs - New Hardware and Software 1 Development server ($18,700) 1 Server software (OS, misc) ($1500) 1 DBMS server software ($7500) 7 DBMS client software ($950/client)

Annual Operating Costs Personnel 2 Programmer analysts (125 hours/ea @ $35/hour) 1 System Librarian (20 hours each @ $35/hour)

Annual Operating Costs Hardware, Software, and Misc. 1 Maintenance agreement for server ($995) 1 Maintenance agreement for server DBMS software ($525) Preprinted Forms 15,000/yr @ $.22/form

The benefits expected from the new system will come from two sources. Increased sales of $20,000 in the first year with an increase of 5% each year thereafter. There will also be a savings of $10,000 per year derived from not having to pay for the old system's maintenance. Annual employees will be given a 2.5% raise each year.

Using the Excel sheet provided. Assuming a 4-yr useful life after the project is developed. Compute the present value of the cash flows, using an discount rate of 6%.