Fitness First , owns and operates fitness centers In 15 Midwestern cities . The centers have done well , and the company Is planning an International expansion by Opening a new* supercenter" in the Vancouver area . Fitness First's president , Cathy Truman , hired an IT consultant , Susan Park , to help develop an information system for the new facility . During the* pro ECT , Susan will work closely with Gray Lewis , who will manage the new Operation _ Background Susan Is working with Gary to study several software acquisition options for their new software system. First , please review Chapter { of your systems analysis textbook and the material on financial analysis tools ( Toolkit* Part . Susan and Gary are considering two commercial software packages and an In- house modification to EXERCISE Ledger option _ They prepared the following summary . Option DEscription* Costs Benefits Software Software package SE,bad to purchase So, add/ yr through positive solutions . Four - year Useful life $1. 500 to Install and configure* customer response . Cannot Inc . LESS Flexible than In - house $2,500 to load Existing data predict other specific savings . system $1 , 090 additional hardware needed Increased sales , Improved* SUITE CUSTOMIZING NEEDED $2,000 annual support fee after customer care , and better first year free* productivity are expected PETTE Software package $7,and to purchase* Game as above FIT FIVE - year usefullife* $2,500 to Install and configure Solution Less flexible than In- house* $2,400 to load existing data Corp . SYSTEM $4, 400 additional hardware needed* Moderate customizing needed* $1, 200 annual support FEE In all Runs slower than other options ! FIVE YEARS Develop In- house System $15, 000 to develop , Install , and Game as above SYSTEMTT In - Six - year usefullife , can USE* configure* HOUSE EXERCISE Ledger Software as a $1, and to load Existing data starting place and hardware _ Existing Staff can handle support Easiest to Update and maintain Study the summary carefully and prepare spreadsheet templates , or navigate to the spreadsheets I have attached In* Blackboard. Youshould assume that all three options require a year period of time for acquisition or development , Installation , configuration , and data loading _ This period Is called Yearn . Actual operation begins In Year 1 . Lise an $` discount factor . Now complete these tasks .* A` Perform a Payback Analysis , calculate AIOLI and perform the NEY analysis for the Software Solutions PACKAGE . Perform a Payback Analysis , calculate ADI and perform the NEY analysis for the Perfect Fit Solution* PackBEE .` Perform a Payback Analysis , calculate Roll and perform the NPV analysis for the In- house development option .\\