ITEMS COST $($R$)$

A$.$ EQUIPMENT COSTS

RFID TAGS $150000$

RFID READERS $350000$

COMPUTERS $250000$

TOTAL EQUIPMENT COSTS $750000$

B$.$ SOFTWARE EXPENSES

RFID SYSTEM APPLICATION $250000$

INTEGRATION OF EXISTING SYSTEMS $160000$

LICENSING FEES $40000$

TOTAL SOFTWARE EXPENSES $450000$

C$.$ WORKERS TRAINING COSTS

EXPERIENCED WORKER IN TEACHING RFID SYSTEM $90000$

SOFTWARE MANAGER $50000$

ACCOMMODATION AND TRANSPORT COSTS $10000$

TOTAL WORKERS TRAINING COSTS $1500$

D$.$ MAINATAINCE COSTS

YEARLY MAINTENANCE $200000$

TECHNICAL SUPPORT $100000$

TOTAL MAINTENANCE COSTS $300000$

E$.$ CONTINGENCY RESERVE COSTS $165000$

TOTAL CONTINGENCY RESERVE COST $165000$

TOTAL PROJECT ESTIMATE $1815000$

Based on the above information

$1.$ Determine the Net Present Value using this formula NPV$=$ I$0+\_($t$=1)^$n$$F$/(1+$k$)^$t

$2.$ The payback period using this formula Payback period $=($Initial investment$)/($Annual savings$)$

$3.$ Total indirect costs

$4.$ Total direct costs