May get help with requirement 1. The detail is in the document. Thanks

Required:

1) Set up an professionally formatted Excel spreadsheet for the data provided and perform the following calculations (assume that one-time costs occur now at time zero, and that the annual costs occur at the end of each of Year's 1-5): a) Calculate the NPV of this project using 6% cost of capital. b) Calculate a Return on Investment (ROI). c) Calculate the Payback Period for the ERP system d) If you used any Excel time value functions (e.g., NPV, PV, etc.) for (a), (b) or (c) above, "manually" test the results of the Excel functions by calculating the appropriate compounded discount rates and reperform the calculations that the Excel functions are calculating so that you have confidence in the Excel formula's.

ACC 444 Fall 2017: Assignment #3 - Garverick Business Case Analysis of an ERP System (Modified version of M. Bradford Assignment) 20 Points Total => DUE ON WED, October 4 by 11:59pm CAN BE DONE IN TEAMS OF TWO (2) MAXIMUM (each receive same grade) Carter Electronics, a distributor of semiconductors and electrical components, is considering implementing an ERP system. This project will represent a huge investment for Carter and thus a business case must be developed in order to gain approval for the project. With the help of knowledgeable process owners, a group of individuals who will likely be on the project team, and IT staff, the managerial accountants put together the following total cost of ownership and benefits over a 5 year horizon (the time estimated that the system will be used until a major upgrade). Carter's cost of capital is 6% ESTIMATED TCO Item One Time Recurring Comments Technology Hardware and infrastructure upgrades $450,000 ERP software contract value $2,000,000 Recurring software maintenance -level 3 support Database and Identity and Access Management Software Costs for serversetwork/wiring/redundancy Expected negotiated net price $360,000 $225,000 18% of software contract value (low end of maintenance) Estimated for MS SQL Server and any of the top 5 IAM systems, which are priced similarly ACC 444 Fall 2017: Assignment #3 - Garverick Data Inventory master data accuracy and BOM master data $350,000 This data is in 2 different systems currently. Deemed to have major data duplication issues. Need scrubbing and restructuring into new format. All other master data scrubbing $200,000 Scrubbing customer, vendor, employee Writing interface programs $275,000 Multiple legacy systems will remain (e.g., fixed assets) Recurring data maintenance Writing data conversion programs People $140,000 2 full time persons for master data maintenance (ongoing 5 years) Convert data to ERP format and migrate $285,000 Internal Project Team $2,100,000 $180,000 Six full-time equivalent people; Center of Excellence - two full time people for 5 years Change Management (consultants) $500,000 $100,000 Includes costs for communication, education, training; ongoing 2 years Project management (consultants) $1,600,000 Integrated project plan, budget etc. Configuration/customization of ERP software (consultants) $1,700,000 Adapting the software to use in the company/filling gaps 15% 15% buffer on all one-time costs to avoid surprises. Contingency - 15% ACC 444 Fall 2017: Assignment #3 - Garverick ESTIMATED BENEFITS Item Sales Current Level $75,000,000 Direct Labor Productivity $15,000,000 6 Fewer Employees Needed Average loaded $50,000 annual salary Purchasing costs % Improvement 5% 10% Annual Benefits Comments $3,750,000 Improvement in gross sales due to improved product availability and better service. $1,500,000 Reductions in idle time, overtime, and other HRrelated issues related to inefficiency of workforce. $300,000 Reductions in clerical/data entry support and warehouse staff Better planning and information = reduced total purchase costs. $1,000,000 20% $200,000 Current Levels % Improvement Annual Benefits Comments $680,000 Annual saving from better forecasting and also implementation of vendor managed inventory Inventory Item Raw Material and WIP $17,000,000 4% Finished Goods $9,000,000 17% $1,530,000 Annual saving from better forecasting and also implementation of demand management module Premium freight $800,000 50% $400,000 Produce and ship on-time reduces shipment cost ACC 444 Fall 2017: Assignment #3 - Garverick Required: 1) Set up an professionally formatted Excel spreadsheet for the data provided and perform the following calculations (assume that one-time costs occur now at time zero, and that the annual costs occur at the end of each of Year's 1-5): a) b) c) d) Calculate the NPV of this project using 6% cost of capital. Calculate a Return on Investment (ROI). Calculate the Payback Period for the ERP system If you used any Excel time value functions (e.g., NPV, PV, etc.) for (a), (b) or (c) above, \"manually\" test the results of the Excel functions by calculating the appropriate compounded discount rates and reperform the calculations that the Excel functions are calculating so that you have confidence in the Excel formula's. e) Copy & paste relevant data/calculation results from this part as an appendix in your memorandum in part 2. Reference relevant results from your analysis shown in the appendix as appropriate in your memo in part 2. 2) You are an analyst for Carter's ERP project selection team. Write a 1-2 page (single spaced) professional business memorandum to the steering committee (headed by me, Dr. Michael Garverick) stating the business case for purchasing the ERP system (also see 1(e) above; you should have at least one \"Appendix A\" in addition to the 1-2 pages of memorandum text). Use at least one of the four business case rationales that we discussed in CH 5 for purchasing the ERP system. Make sure that you reference key #'s from your TCO analysis and have a persuasive, evidence-based memorandum justifying your need for and recommendation to purchase (or not) an ERP system. Submit both Requirements #1 (Excel Analysis) and #2 (Business Memorandum in Word). Make sure that your name(s) are included in both assignment files that you submit. To upload multiple documents (i.e., your (1) Excel Analysis and (2) Business Memorandum), please refer to the following link (note: do not hit submit until you have searched and found & attached both files): https://bbcrm.edusupportcenter.com/link/portal/8197/8382/Article/4209/How-do-I-upload-multiple-filesfor-the-same-Blackboard-Assignment