Formative Exercise Exercise Description: Using concepts, issue, and skills you learnt form the readings, PowerPoints notes, the Business Case provided in the next few slides, to address the questions below. That is developed a comprehensive Economic Feasibility Workbook. Even though the focus of this exercise is mostly related to developing an Economic Feasibility Workbook for the summative assignment, you will be required to define terms, and address other major feasibility points, etc. That is, requires to meet the APA format and correctness and those that are required for this course. Moreover, correct and appropriate visual appearance, grammar, and quality of writing, as well as its contents, citing, and reference to justified context. Using PowerPoint format, make sure that the text of your report is well-structured, using paragraphs, full sentences, and other features of a well-written presentation. Use an appropriate number of slides, slide size (widescreen), soft background, and text font and size should appropriate for the reader. Assignment Details: From the Business Case text and Table A, use insightful justifications to complete a feasibility workbook. In the workbook. 1) Develop a separate worksheet for each, Tangible benefits. One-time Cost, and Recurring Cost. For each category (Tangible benefits, One-time Cost, and Recurring Cost) sheets must include as least two examples of tangible benefits, one-time costs and recurring costs, respectively. 2) Using a discount rate of 10%, develop a well labeled, legible flexible cost-benefit comprehensive analysis worksheet. Then, identify the overall NPV and ROI and when will break-even occurs. Also, include a well labelled and legible break-even chart. 3) Flexible - The sheets developed for (1) and (2) must include the use of cell-referencing, functions, etc., in, within, and across worksheets so when changing static values (ex: discount rate, one-time cost, etc.), all cells dependent on these changes are automatically updated 4) After complete the previous steps, make change to the workbook to reflect the data in Table B (slide5) Business Case: American Labs American Labs provides lab testing services for a variety of clients, mostly doctors' offices and other small medical businesses throughout the Midwest. Clients send test vials containing blood samples or other test requests to American Labs' testing center, where the requested tests are performed, after which the results are sent back to the client via fax. Jane Smith is the president of the company and the sponsor for the project is Rago Quell. Jan and Rago have approved the service request for the project. Jim Stevens, who is the project manager and who reports to Rago, is the head technician in the testing facility at American Labs, has approached you for help with the company's outdated inventory tracking system. The business has picked up recently, and the turnaround for clients' requested tests has been lengthening. To make matters worse, the lab technicians are seldom able to give customers an answer regarding where their requests fall in the testing queue or how long they can expect the turnaround to be. Much of this stems from an old, mostly paper-based inventory tracking system, which includes handwritten labels put on each of the incoming test vials and a logbook with entries made for each vial at each stage of the testing process. Business Case: American Labs - Cont. Jim would like to streamline the online inventory tracking process with an updated information system that uses barcodes and a modern database to keep track of customer test requests and the accompanying vials. He would like to enable technicians to provide accurate status updates and turnaround estimates, and generally shorten the turnaround time for test requests. He hopes to get this project completed within 4 months. After an initial analysis, the following estimations were summarized Table A (Values represent $) Year 0 0 Net economic benefit One-time cost Recurring Cost 75,000 0 Year 1 54,500 27,500 Year 2 54,500 27,500 Year 3 54,500 27,500 Year 4 54,500 27,500 Year 5 54,500 27,500 Business Case: American Labs - Cont. Table B (Values represent $) and discount rate = 12% Year 0 0 Net economic benefit One-time 70,000 cost Recurring 0 Cost Year 1 53,500 26,500 Year 2 53,500 26,500 Year 3 53,500 26,500 Year 4 53,500 26,500 Year 5 53,500 26,500