Manage Your Health, Inc. $($MYH$)$ is listed as a Fortune $500$ Company that provides various healthcare services across the globe. They have $5,000$ full$-$time and $2000$ part$-$time employees. A study found that MYH$,$ Inc. pays $45\%$ more than the industry average for its employee healthcare premiums due to the poor health of its employees. Therefore, the company plans to provide a web application that offers online functionalities to help employees enrol and manage their health$-$management and recreational programs. This application will have the following capabilities.

$$ Allow employees to register for company$-$sponsored recreational programs such as soccer, netball, bowling, jogging, walking, etc.

$$ Allow employees to register for company$-$sponsored classes and programs to help them manage their weight, reduce stress, stop smoking etc.

$$ Track employees' involvement in these recreational and health$-$management programs

$$ Offer incentives for people to join the programs and do well in them

Project's financial information

The project is expected to cost the company $$800,000$ for web application development and $$140,000$ for web and database servers. The project is expected to take eight months to complete. They believe this application will help improve their employees' health a year after its rollout. The rollout of this app will help the company to negotiate lower health insurance premiums, providing a net saving of $$250$ per employee per year for full$-$time employees and $$150$ per employee per year for part$-$time employees over the next five years. The company expects no savings in employee healthcare premiums for the first two years when the application is up and running. A yearly budget of $$100,000$ has been set aside for the next five years for system maintenance. A new role, "Application Operations Manager," has been created to work with the software engineering team to develop the application and provide ongoing application support after the rollout of the application. This role will cost the company $$140,000$ with a $3\%$ yearly increase in the annual salary. Assume that the discount rate is $6\%.$

Task $1$: Business case financial analysis $(20$ marks$)$

$1\mathrm{.}1$ You must prepare a financial analysis up to year $5$ using the Table provided below for MYH$\text{'}$s project to find the project's return on investment $($ROI$)$ and payback period based on the financial information provided.

$1\mathrm{.}2$ Calculate the ROI of the project.

$1\mathrm{.}3$ Calculate the payback period of the project.

$1\mathrm{.}4$ Justify if the proposed project is worthwhile to undertake.

Task $2$: Project cost control $(20$ marks$)$

You are required to control the budget for the above MYH project.

$2\mathrm{.}1$ What is the total budget at completion $($BAC$)$ for the project? $(1$ mark$)$

$2\mathrm{.}2$ Assume that the work for the first month is completed in the project. Due to the work done so far, the following information has been provided for its first month.

Plan Value $($PV$)=$ $$100,000$

Earned Value $($EV$)=$ $$90,000$

Actual Cost $($AC$)=$ $$110,000$

Answer the following questions $2\mathrm{.}2\mathrm{.}1-2\mathrm{.}2\mathrm{.}5($must show all the work$).$

$2\mathrm{.}2\mathrm{.}1$ Explain a likely reason for the difference between PV and AC for the first month of this project.

$2\mathrm{.}2\mathrm{.}2$ Calculate the cost variance $($CV$)$ and the cost performance index $($CPI$)$ for the first month of this project. Is the project under or over budget?

$2\mathrm{.}2\mathrm{.}3$ Calculate the schedule variance $($SV$)$ and the schedule performance index $($SPI$)$ for the first month of this project. Is the project ahead of or behind schedule?

$2\mathrm{.}2\mathrm{.}4$ Calculate the new estimate at completion $($EAC$)$ for this project after the first month's work.

$2\mathrm{.}2\mathrm{.}5$ Calculate how long it will now take to finish this project.