MINICASE STUDY XYZ consulting firm uses an enterprise wide project management system to track all project information, focusing on the status of deliverables and meeting scope, time and cost goals. There is an opportunity to provide a new section on the intranet dedicated to sharing consultant's project management knowledge across the organisation. However, as part of the budget estimated, it is projected that the project manager will work about 20 hours per week for 25 weeks (almost 6 months). The other internal staff will work a total of 60 hours per week for the same duration of the project. The customer representatives would not be paid for their assistance. A staff project manager would earn $50 per hour. The hourly rate for the other project members would be $70 per hour, some hours normally billed to clients may be needed for this project. The initial cost estimate also includes $10,000 for purchasing software services from suppliers. After the project is completed, maintenance costs of $40,000 are included for each year, primarily to update the information and coordinate the "Ask Expert" feature and online articles. Projected benefits for the project is based on reduction in hours consultants spend researching project management information, appropriate tools and templates, and so on. Projected benefits are also based on small increase in profits due to new business generated by this project. If each of more than 400 consultants saved just 40 hours each year (less than one hour per week) and could bill that time to other projects that generate a conservative estimate of $ 10 per hour in profits. If the new intranet increased business by just 1 percent, using past profit information, increased profit due to new business would be at least $ 40,000 each year for a project assumed to have a life span of 3 years. Using a discount rate of 8%, calculate the following: The project payback period. b. The Net Present Value (NPV) of the project. Return on Investment (ROI). From your answers, comment on the economic feasibility of the project